This week Debt Centre wanted to share with our readers something that became a problematic and sensitive situation among the consumers and in their households.
Financial depression is one of the terms that most of the people ignore or do not take to heart while they deal with their everyday problems.
Debt can cause serious health issues
Financial stress over big debts can cause anxiety and severe depression, high blood pressure and can lead to insomnia, diabetes or substance abuse. Feelings like fatigue, low energy levels, the loss of interest in things that were previously enjoyable and rewarding, lack of motivation, can affect the ability to complete normal tasks.
Depression is a type of mood disorder characterised by gloom, sadness, hopelessness, and inadequacy. The reality is that consumers do not only deal with the stress of debt, it is the cost of living taking its toll, and school fees that need to be paid as many consumers do not fall into the income category that allows them to apply for reduced fees.
There are families that have to deal with the hardship of divorce, retrenchment or the loss of a loved one, in certain cases, the breadwinner of the house. In worse cases the consumer could be diagnosed with clinical depression, which interferes with a person’s ability to cope with their daily stresses and obligations. They become unable to function effectively in their everyday life, including their normal family activities.
On the numbers
According the NCR (National Credit Regulator) the South African consumers are way over in the red and more than half declared over-indebted. The financial statistics released in October 2019, show the active credit reports of 25 million people with debt, and 40% of that total, about 10.25 million people are not honouring their contractual credit agreement payments, and have fallen behind.
How to cope with the stress
- Break the cycle of plunging further into debt – you need to pause and have a look at what you are buying, how you are spending, and realize that you are living in your own debt cycle. We at Debt Centre call it identifying the cause
- Start your budget check up – Take control of your finances, set time aside to organise the money coming in and going out of your bank account. The more control you practice, the less stress you will feel.
- Create extra sources of income – advise from our side – start a small side business; make money with your hobbies and use social media to sell your products or service.
- Invest in your own health – make time for yourself, start with breathing exercises – it’s one of the fastest stress relievers which can be done anytime and anywhere. Practice muscle relaxation – tensing and relaxing your muscles is a basic quick stress reliever and easy to do, soon you will be able to relax your body in moments of high stress and that can boost your mental health.
- Meditation – regular exercise walks, laughter and music are all important things to actively do and you’ll be on your way to better health and less stress.
Consumers love to buy things and spend socially, ignoring the BUDGET, and before they know it, there’s not enough money left to pay the bills, not to mention the monthly debt payments on old loans.
After the first weekend of the month the reality stares them in the face, little to no money left, and if they are fortunate enough, yet another small loan will be necessary. The majority of people don’t know how to calculate things like interest rates on loans, pay almost no attention to the terms and conditions of their repayment contracts, sign their name away just to get that extra money to get through the rest of the month.
We are living in a world where we want things but don’t need them, easy access to debt, and spinning around in that debt cycle which could end up in a serious financial crisis and mental illness. So our advise is that you have to come to a point where you say ENOUGH…
Say No to that new mobile phone you don’t really need, to that bigger Smart TV, the faster more expensive computer, kitchen appliances, better security, bigger sound systems, faster gadgets for the internet.
Saying NO makes you re-examine your priorities, it can help you set boundaries and ultimately reduce your stress before you get anxious.
Debt Centre has the solution Follow our advice on the small and the little things and you’ll find yourself less depressed:
- Upgrade your vehicle if necessary, every three years
- Get your outstanding school fees up to date
- Divide your income in smaller batches for payments, in other words, keep to your budget
- Get credit life insurance while you can, to cover your payments in times when you cannot, when you become retrenched, or permanently disabled and temporary disabled.
- Ask for help at Debt Centre, we have various products and services to help consumers that are in arrears or struggling to keep their accounts up to date. We are experienced to assist consumers who need advice and help to reduce their monthly instalments.
- Contact us before you lose your vehicle or other assets, one of our professional debt counsellors will assist you, it is then best to consider a debt review application way before the balloon payment becomes due.
- Debt Centre’s counsellors will negotiate an affordable repayment plan under debt review and stop all your creditor’s hassling.
Visit our website https://www.debtcenter.co.za and connect with us on WhatsApp, one of our registered debt counsellors are always online during reasonable times to assist and ensure you receive the very best assistance to protect assets i.e. Home Loan and vehicle Finance, and we cover unsecured debt in the program as well.
Getting your options on a table is so much better and not knowing what to do and end up ill with depression, can affect your work and social life. It is well known that the best medicine for financial stress is to share and NOT keep it for yourself, the more you talk to less isolate and stressed you feel.
We at Debt Centre care enough to make a difference to a consumer’s financial outcome, to a positive way forward. Pride is the greatest downfall of man; focus on the things you can change that will make your financial outcome better and ensure your family can get by on reasonable living expenses.
Message from the author Annienne Nel
Always keep in mind that we are all fallible humans, we make mistakes and we learn from them. In the Debt industry, the National Credit Act saved over 1 million consumers in South Africa from debt persecution. We thank God for the little and the big things in our lives.
I pray that God bless you and your families. Stay strong and focus on the solution for the problem in your lives. Until next time, goodbye.