03 Feb Feeling overwhelmed by credit card debt?

Credit card debt is very common in South Africa, with millions of consumers signing up every year. The reality of credit card debt is actually frightening, given that the interest rate on a credit card is very high, which in turn results in excessive monthly payments that become higher and higher with every purchase made.

One of the risks for the late payment of a monthly instalment due on your credit card is a late payment penalty, which can lead to certain credit providers increasing the standard interest rate. Other times, a late credit card payment can lead to a default, which will then result in your next monthly payment being doubled in order to make up the missed payment. For consumers struggling to provide for their families, pay rent or even get to work and back, missing a credit card payment could seem to be the only choice, however the repercussions can easily cause a person to feel overwhelmed, affecting everything from your health to your work performance and family’s wellbeing.

Although there are instances where credit cards can be helpful (especially so in cases where the payment can be made back in full that same month), credit card debt often leads to feelings of stress and uncertainty – at Less Debt, we offer consumers relief through a range of professional financial services. Start by enquiring with us for your free online debt assessment, or make use of our debt calculator to fully grasp your current financial circumstances, while also outlining the outcome of debt consolidation against your current expenses and salary.

Accepting that your credit card debt has become unsustainable is the first step. The next step is realizing that there is a way out. Debt review has proven to be a very effective and manageable solution for consumers who are dealing with the pressure of too much credit card debt. This form of relief involves breaking down all your debt and restructuring your monthly instalments to better suit your budget and improve your outlook on life. Through Less Debt, our clients can rest assured knowing that this process is secured by court order, while we are National Credit Regulator (NCR) accredited.

Another benefit of debt review is that you as the consumer will be protected from the repossession of your assets during the process, which can be devastating to your family and have long lasting effects on your credit score. Asset repossession (usually of your house, vehicle or furniture) is usually one of the last resorts followed by credit providers when debt is not paid back over a certain timeframe, with too many missed payments.

At Less Debt, we want you to pay back your credit card debt as soon as possible, and will draw up a repayment plan that is achievable and fair. Don’t wait till it’s too late, check in with us now and start looking forward to a happier and healthier financial mindset.