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Unemployed And In Debt What To Do In South Africa?


Unemployment and debt are two of the greatest financial challenges South Africans face today. With unemployment levels being so high, it’s easy to find yourself in a situation where you have no income but still have debt to pay off. It can be overwhelming and stressful, especially if you don’t know what steps to take next. Fortunately, there are steps that you can take to make your life easier while managing both unemployment and debt at the same time.

Understand Your Debt

The first step is understanding exactly how much debt you owe and who it is owed to. Make a list of all your debts including credit cards, student loans, car loans or any other type of loan from banks or lenders. Add up the total amount owing for each type of loan as well as the interest rate associated with each one. This will help give you an idea of how much money needs to be paid back in total and which accounts need more urgent attention than others due to their higher interest rates or larger balances owing on them.

Negotiate Repayment Plans

Once you understand your current debt situation then it’s time for some negotiation – contact each lender individually (or use a third party such as a consumer rights organization)to negotiate repayment plans that suit your budget better – this may include reduced monthly payments over extended periods or even complete write-offs depending on your circumstances . Be sure not to agree on anything without fully understanding all terms involved before signing anything into effect – this could potentially lead into further complications down the line if misunderstood/misread agreement clauses were included in previous settlements made between parties prior..

Create A Budget Plan

It’s important when unemployed & in debt that budgeting should be done carefully so funds allocated towards essential living expenses such as rent/mortgage payments , food bills etc are met first followed by necessary payment arrangements for outstanding debts accrued during period spent out employment . Having an organized plan helps keep track expenditures & monitor spending habits ensuring one doesn’t fall behind schedule set forth previously outlined within said proposed budget plan crafted by individual themselves..

Seek Professional Advice

If negotiations do not go as planned with creditors then seeking professional advice from organisations like National Credit Regulator (NCR) would also prove beneficial since they specialize providing consumers assistance support in such matters pertaining banking/financial services industry surrounding topics related credit agreements & legislation applicable throughout country at large .. There various free resources available public domain ranging educational videos webinars provided NCR website itself outlining key points revolving around responsible borrowing practices anyone facing difficulty paying back accumulated loans taken out past durations span must consider utilizing order gain full clarity subject matter ahead making any rash decisions regarding aforementioned area particularities…


Facing unemployment combined with existing debts can feel like an insurmountable challenge but with proper planning and guidance these issues can be managed successfully so long as action taken properly address underlying cause instead merely skimming surface level solutions thrown about casually without taking into account unique situations individuals currently dealing firsthand day day basis … Understanding obligations owed lenders coupled negotiating reasonable repayment plans along creating realistic budgets tailored meet personal requirements ultimately serve best interests those struggling through times difficulteconomic crisis faced nationwide South Africa right now!

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