Retire in Good Wealth

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Don’t resign your job to pay debt!

In this week’s blog, we here at Consumer Debt Support (CDS) would like to talk more about the real problem consumers are facing: the stress they no longer can cope with, the fear and guilt of not being able to pay their creditors monthly. We have come to realise how serious this matter has unfolded and the financial, mental and emotional effect it has on many families.

We do understand how difficult it is for over-indebted consumers, finding it extremely challenging in a difficult economy, struggling to keep up with the increasing food prices and living costs, which have a major impact on their pockets. It robs them of the ability to cover their monthly debt commitments as per their contractual debt obligations. Going through all the emotions of not being able to pay a creditor, or not sharing this setback with your spouse, just adds to the dilemma. Everybody needs credit now and then, but paying back, especially in a technical recession, can cause panic and anxiety. One can easily be tormented by these emotions and be apprehensive, when creditors keep on calling you to collect the ‘skipped’ payment, or for payment arrangement to settle the debt before legal action is taken.

It’s normal for a person dealing with debt stress to start making plans in your head. Making the wrong choices to pay debt can have long-term consequences that can affect the whole family and household negatively.

Here is what you should not do when you find yourself in a difficult financial position: Do not resign from your job to collect your pension benefit; Do not use the pay-out to settle some, or all of your debt. Once the pension is paid out, the consumer becomes devastated to discover they only received their portion of contributions and NOT the portion contributed by their previous employer. This is when the problem hits with a sledgehammer effect, knowing that you don’t have enough money to pay creditors and realising you have no job as well.

Protect your pension at all costs for when you retire. Digging into this investment before reaching your ‘very high’ age, is improvident, with no professional risk analysis done for the short term or long-term benefits, or calculated losses of pension at date of retirement.

Come talk to us here at CDS, we can do a debt review assessment that will cost you R350-00. This will give you an idea how we can consolidate your debt into one affordable monthly payment plan. Ask yourself where were you five years ago or what did you do Five years ago? Could you be promoted in your company five years from now, and what could your earning potential be? Leaving your job just to use access pension for the purpose to settle debt or partial debt, will decelerate your goals and leave you unemployed, or you will have to cover living expenses and debt with pension that you were saving for retirement. Go to our user friendly website www.debtcentre.co.za/contact-us/

Every South African can apply for debt review with a registered debt counsellor. Paying one affordable debt payment over five years will help you achieve your goals and service your debt the legal way. Consumers must ensure they only deal with registered debt counsellors. How do you know a debt counsellor is registered? Below are a few points to look out for.

Is my debt counsellor registered with the National Credit Regulator (NCR)?
1. Must have a valid NCR -registered debt counsellor window decal displayed expire 31 July 2019.
2. A visible original debt counsellor certificate issued only by the NCR.
3. You can check if your debt counsellor is registered by going to the following website: http://www.ncr.org.za/register_of_registrants/index.html
4. Consumer Debt Support (CDS), Valid Debt Counsellors Certificate is loaded www.debtcentre.co.za for

Do not become another victim of fraudulent companies offering debt consolidation or debt restructuring, only to realise after a few months your creditors were never paid, and your money is gone. You are the only person paying the price.

Deal only with Registered Debt Counsellors

In conclusion:
Consumers, we understand that dealing with debt in a difficult economic situation, is not easy when you have a family. Make good sound choices that will help you settle your debt without placing your retirement at risk. You will need your retirement fund when you are no longer working. By resigning, you lose a small fortune of your retirement fund that you cannot catch up with afterwards. Don’t end up being jobless because you did not do enough research on how to deal with a debt problem. It is your right to retire in good wealth.

“The lack of money is the root of all evil.” – Mark Twain

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