HOW NOT TO MESS UP YOUR CREDIT RATING

The past 18 months have been tough for many people. Lockdown restrictions leading to reduced income have taken a harsh toll. We’ve all tightened our belts and cut our expenses to the bare minimum, but many of us still find ourselves in hot water. Enquiries about debt counselling have skyrocketed this year, but even before Covid-19 many South Africans were deep in debt. According to DebtBusters’ Q4 2020 Debt Index, some South Africans are spending a staggering 60% of their income every month repaying debt.

And now, on top of everything else, we’re coming up for Christmas, which can be extremely expensive. At this time of year it’s particularly easy to fall for special offers, which are usually accompanied by offers to buy on account or in instalments. It’s a slippery slope, and that’s the thing about debt: it can be really easy to slip into but really tough