"Over 10 million South Africans either missed a debt payment, paid late, or defaulted on a debt in 2020 due to the impact COVID-19 had on our livelihoods," says Benay Segar, Head of DebtBusters. He also notes that in the third quarter of 2021, debt counselling increased by 17% compared to 2020.

"If you find yourself in this predicament, it is important to face it head-on and speak to creditors so that a plan can be made. Ignoring the problem will only increase your fees and interest, and have a negative impact on your credit record," adds Ndimande.

She strongly recommends seeking professional help to negotiate with creditors on your behalf and restructure your payments. DebtBusters notes that consumers who successfully completed debt counselling and received their clearance certificates in Q3 2021 paid back R300 million worth of debt to their creditors.

Ndimande concludes, "In tight financial times, situations can seem hopeless. That's never the case. It's imperative you start now. Start today. Consider ways to pay off the smallest debts first to free up income to pay off the next smallest debts, and so on. This creates a virtuous snowball effect. It's also critical to reach out for help. Sanlam Credit Solutions offers free credit coaching, so you can create a realistic roadmap to get your finances back on track."

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Sanlam Ltd. published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2021 16:09:04 UTC.