High levels of financial stress is negatively impacting the health as well as the home and work lives of many South Africans, according to DebtBusters.
Increases in the cost of food and petrol as well as rising interest rates and inflation has put a lot of financial stress on many consumers. To manage this rise in cost of living, consumers turn to debt to make ends meet which adds to their financial stress.
With October being Mental Health Awareness Month, people should be aware of the stress that financial problems can cause and its impact on mental health.
Charnel Collins, CEO of National Debt Advisors (NDA) said that financial troubles often result in anxiety and stress, which can have a negative impact on mental health or worsen an existing problem.
Collins said: “Being unable to support your family, honour your payment commitments or make ends meet will cause feelings of anxiety and panic.”
‘’Over-indebtedness does not only impact our ability to achieve financial security, but it also harms our mental state, taking a toll on our emotional well-being.”
Janine Horn, financial adviser at Momentum, shares six ways to avoid or break the cycle of debt:
– Ensure that monthly debt repayments are made on time; even a payment that is 24 hours late can be bad for a person’s credit rating.
– Pay the minimum instalment required on your debt repayment.
– Take care of your most “expensive” debts first because these are the accounts that generally charge high interest rates. This is called the avalanche method.
– Close accounts not in use as credit providers assess all of the credit accounts on record, even the ones that are not being used.
– If the consumer is able to, they should pay more than the minimum payment on accounts to improve your credit standing.
– Don’t ignore a letter of demand; instead, be proactive and take the appropriate action.
IOL Business