THERE are over 25 million ‘credit-active’ active consumers in South Africa.
According to a study released by the National Credit Regulator in 2018, an alarming 10 million on the credit active consumers were behind on their loan repayments.
This has resulted in many of them drowning in debt which has become reality for many South Africans who find themselves neck-deep in credit card and retail store account debt.
However, there are steps that can help people clear and clean up their credit score at the same time.
Head of Financial Education at Old Mutual, John Manyike says there are primarily five ways at the disposal of indebted consumers to get out of debt.
Manyike says indebted people should attack smaller debt, which will boost their self-esteem.
According to Manyike, dealing with smaller debt can also expose people to more expensive debt.
“So, the longer you delay servicing your most expensive debt – you end up paying more,” Manyike said.
