05 Jun The problem with “borrowing from Peter to pay Paul”.
Keeping up with never-ending debt cycles can cause serious long-term effects on your financial security and leave you (and those who depend on you financially) facing difficult consequences. Sadly, the accumulation of debt does not happen all at once but rather gradually over a period of time – before you know it, you are “robbing Peter to pay Paul”, while actually robbing yourself more than anyone else.
With a large percentage of South Africans finding themselves indebted in some way, it is not hard to understand why so many of us find ourselves in the throes of unforeseen financial turmoil. Statistics show that 60% of the population struggle to meet their monthly payments on home loans, vehicle finance and credit cards. In some cases where it becomes impossible to pay back outstanding debt in time, making more debt by taking out a loan payment seems like the only choice. If this is you right now, stop and consider your options by enlisting the services and knowledgeable expertise of Less Debt.
Making more debt or taking out a large personal loan to pay off urgent outstanding bills is rarely a good idea. It only means that you are replacing one debt with another debt and adding more years of repayments to your already over extended account. At the end of the day, you will be drained not only of your money but also of your health and mental wellbeing. By taking out more and more debt and struggling with monthly payments, you could find yourself face higher interest rates, various penalties and even late fees with the potential of being blacklisted.
So, how can you avoid the notorious “robbing Peter to pay Paul” cycle when your finances are overwhelming you? Firstly, it is important to understand the need to always pay bills on time, no matter what. Don’t take out loans you can’t afford or open accounts you know will only make things harder in the coming months, especially one-month loans or pay day loans. A quick fix is not the way to go because the cost of living is rising continuously, meaning more rapidly growing payments if you always use making debt as a way out.
To eradicate the constant woes and worries bought on by ever-increasing debt; avoid more monthly payments and unplanned loans at all costs! Our professional team at Less Debt offer a solution to those struggling to change their lives and improve their finances.
With debt review your monthly debt payments can be reduced with up to 50%. Find yourself finally able to breathe again, knowing that there is an end in sight. Check in with one of our friendly and professional debt consultants today.