I was busy compiling a report last week and needed to verify some stats…

Naturally, I’m aware of the state of our economy and the devastating effects Covid19 has had on all of us, emotionally, but more so financially.

The unemployment rate is officially well over 45% and the ‘debt to income’ ratio is now almost at 80%… So basically, 80% of South African’s salaries are going towards paying off debt.

You don’t have to be an economist to see how this plays out. The strain and pressure will become too much, and eventually, consumers will start skipping accounts, bills and eventually assets, to keep their households afloat. God knows you can’t blame them. I know I’ve been there and I’d choose to put food on my table any day over paying off debt.

So that’s when consumers start gradually short paying, and eventually, stop paying creditors altogether.

This then pushes the default rate up even further…

Regardless of how dire your personal situation is regarding debt, there’s never a situation that you cannot get out of and that cannot be fixed. The problems come in when you wait too long and make your situation even worse.

Now I don’t know about you, but I’m pretty tired of all the negative BS and could do with a bit of good news for a change.

Despite all the negative data, there is some upside. The lockdowns have eased up drastically and there are economic signs of improvement, however small they may be.

Companies are starting to stabilise and many employees are getting used to working from home now. (which is a blessing to many and I suppose not so much for others…) hahaha.!!

Even though economists predict that we will still have a rocky next 12 to 24 months ahead with little signs of improvement, I’m an eternal optimist and will choose to believe that the worst is behind us, despite our current economic state of affairs.

I believe that now is the time to pick up the pieces and start rebuilding…

Despite what you may believe or how it may appear now, your struggles with debt is temporary, and so are the many debt management mechanisms available at your disposal. The key is to find the right one suited to your current financial state and put it to work for you. The only time a debt management vehicle will work against you, is if you’ve chosen the wrong one!!

Each one has its pros and cons, so the onus is on you to do proper research, speak to a professional and find a good fit.

It’s very important that you take your time to do this and find a reputable, trusted debt specialist with whom you can walk a journey. Having said that though, don’t take too long and procrastinate to the point where the bank sends out a debt collector to come to repossess your car or house.

If you’re not that great of a researcher or often get lost in the millions of pieces of information online, leaving you more confused than when you first go there, I’m happy to send you a report I’ve compiled which will give you a lot of clarity, educate you and leave you feeling more informed as to which option to choose, in order to get rid of your debt.

Simply send us an email or email me directly (Yes, I check my own mail) and I’ll be happy to forward you the report, for free and with no BS hidden agendas.

I hope you have a great Friday and weekend ahead.

Cheers to your financial independence.

Andre Misrole

Chief Growth Officer | Debt Specialist

Exonerate SA

021 300 0015

andre@exonerate.co.za