Here are some of the things which may have been purchased on credit to push you into a tight spot: As to how common this issue is and whether it’s isolated to you, consider the origin of the global recession in 2009.
Now you can have everything you’ve ever wanted at, seemingly, little cost – but the debt is mounting and the bill is coming.
This is typically much lower than the interest rate you’d score for short term loans or retail store cards.
It’s common practice in South Africa for creditors to sell your debt to other companies, and this is typically where payment notifications turn into harassment.
Although it’s illegal, some of these debt collection companies will add nonsensical bills to your owed total – charging you every time that they have to make a call, whether they reach you or not.
If you feel like you’ve lost control, that these collection people are mishandling your account and costing you more money, a debt consolidation loan is one option. Home Loans: Many financial experts will tell you to use your home loan (should you have one) due to the low interest attributed to it.Depending on your credit profile, your home loan rate is probably close to the current prime rate.