We are drowning in debt

[Sly21C]

http://www.timeslive.co.za/sundaytimes/2011/10/23/we-are-drowning-in-debt

A survey of consumer debt has come to the shock conclusion that South Africans are trapped in the worst debt crisis yet, with more than 6000 new debt counselling applications a month.

Case studies in the Consumer Debt report, showing how consumers registered with authorised credit counsellors are drowning in debt, include that of a Johannesburg couple with a net joint income of R50200 and monthly debt repayments of R57000.

The couple have a combined debt of R3.8-million, which includes six credit cards in arrears to the tune of R240000, a R1.2-million home loan, R85000 worth of personal loans, three retail store accounts totalling R70000 and a R14000 bank overdraft.

A 54-year old professional based in Johannesburg, with a net salary of R25300 and monthly debt repayments of R36084, has a combined debt of R1.9-million. It includes a R1.5-million home loan, three credit cards owing R129000, three overdrafts worth R127500 and a R15000 personal loan.

Why can't we (myself included) all just live below our means? I see people driving big fancy cars that consume a lot of fuel but yet always complain when the petrol/diesel price increases. We buy big houses and a lot of sentimental but unnecessary stuff like house decorations and all sorts of things but yet we are in debt. Something wrong with us I tell you......

The highlight for me in the article is the couple with 6 credit cards, why 6 credit cards? Well I actually shouldn't judge because I have 2 credit cards, I have an ABSA credit card and a Woolworths credit store card which i only use to get their in-store discounts and to benefit from their specials. I owe exactly -R50 on both credit cards. I just get surprised at people who have a lot of credit cards and owe a lot on them, what do people buy and why?

 

[satanboy]

The mind boggles.


(Although the wife just gave me a R25,000 load to clear my credit card. )

 

[Voicy]

We buy things we don't want,
with money we don't have,
to impress people we don't like.

 

[satanboy]

We buy things we don't want,
with money we don't have,
to impress people we don't like.

I buy things I want, with money I don't have, but NEVER to impress people.

 

[JerryMungo]

I buy things I want, with money I don't have, but NEVER to impress people.

And in so doing, feel superior to the rest of the plebs out there

JK

Seriously tho, it's priorities. The number of people who tell me it's time to sell my '93 1300 Corolla and 'upgrade'... Upgrade what? The seat I use to get around in? Why? I've heard excuses ranging from 'but your clients won't respect you if you drive that old thing'.... to 'you feel better about yourself and you'll be more successful if...'

Excuses I tell you... and don't think I haven't been tempted. Of course, car aside, I have spent plenty on unnecessary things, so don't think I'm feeling superior cos I haven't splashed on a fancy car.

Consumerism, whatever we call it, affects us all to some degree. I blame facebook and the 'keeping up with the joneses' attitude, except the joneses aren't the people next door, they're the people you went to school with.

Most of us have to admit that there's fewer things more humiliating than seeing someone you went to school with doing better than you. Especially if you thought that person happened to be a bit of an idiot. We all want to appear successful.

So I reckon, forget the Joneses and look at your own family and whether your kids and spouse are happy, and hopefully you are fortunate enough to have a spouse who wants nothing more than for you to be happy, no matter what the joneses are up to.

 

[satanboy]

And in so doing, feel superior to the rest of the plebs out there

JK...

lol...maybe

but maybe I just like expensive schit...

 

[JerryMungo]

lol...maybe

but maybe I just like expensive schit...

Don't we all!

 

[Sly21C]

I buy things I want, with money I don't have, but NEVER to impress people.

That statement right there describes me and my spending habits best. I have a not so expensive car, but I spend a lot of my money on food (I'm not good at cooking ) and on movies. I actually like the feeling of disappointing people who keep on telling me to buy a better car and find my own flat instead of sharing the flat I live in. It's hard to resist keeping with the Jonses or the Khumalos sometimes.

 

[agentrfr]

Set credit card limit to R50. Overdraft to R100.

You are retarded if you do otherwise.

 

[Lounger]

The rate hikes and electricity increases are hitting people hard.

 

[BrandOfRiva]

Constant unavoidable cost of living increases.

 

[Sinbad]

Constant unavoidable cost of living increases.

Yip. My entire annual increase has gone to increased municipal bills.

When I moved into this house it averaged 1000 a month. Now it's closer to 5k. (5 years)

 

[Bluray]

Set credit card limit to R50. Overdraft to R100.

You are retarded if you do otherwise.

I guess some are more retarded in owning a credit card in times like this.

Sent from my  iPad using Tapatalk

 

[hawker]

Fuel prices are killing me :/

Really looking to find a car that is more fuel efficient.

 

[BrokenLink]

A survey of consumer debt has come to the shock conclusion that South Africans are trapped in the worst debt crisis yet, with more than 6000 new debt counselling applications a month.

There`s definitely a debt problem, but I think this statistic might have more to do with the fact that you get a lot of legal protection when you are in debt counselling. Thus more people going to debt counselling to avoid legal action against them, where in the past people may not have gone into counselling and simply defaulted or made agreements with the banks.

 

[Other Pineapple Smurf]

Set credit card limit to R50. Overdraft to R100.

You are retarded if you do otherwise.

Asked my one CC company if I could drop my limit to 0 or something like R100 and they just replied no! It will be the worst thing for my credit history, worse than missing payments as it reflects that I cannot manage debt. Closed the account the following day.

But on the overdraft, don't have one at all. I made sure mine was not activated on my new cheque account and so glad now - been a tough month for us and the temptation is not there to get into more debt.

 

[Other Pineapple Smurf]

Fuel prices are killing me :/

Really looking to find a car that is more fuel efficient.

Consider public transport then like I did (if it is possible). Petrol is not your only expense. I've delayed getting a second car for me to commute to work as it would cost me R5K pm to do so (petrol, parking, insurance, payments, service). I pay R400 per month for my bus ticket (110km round trip each day) and just remind myself that I'm saving R4600pm that I don't have even if I wanted to.

I understand that not everybody has the option of public transport (that is safe, reliable ones) but if you do, then do consider it.

 

[Nod]

The rules are simple:
1) Don't buy what you want, buy what you need.
2) Only take out a loan for a house, and if needed, a car*
3) If you could live without something for years, you can take a year to save for it, and buy it cash.
4) If you have used something for 6 months, you probably are better off selling it.

* The car you need != the car you want

 

[TipsyTart]

We needed a new vehicle this year and had credit cards/loans etc so we took a loan, killed all the debt,closed all CC's and accounts, got a car cash leaving us with quite abit of money spare every month. Sadly, as the year has moved on, our spare cash has been eaten by the general rise in cost of living..elect/food/petrol etc etc- totally sucks. And makes me question if we did the right thing after all. We are not massive spenders either..if we want something, we first check to see how big the difference is between wanting or actually needing it. I suppose there is also a massive difference between people who have kids and who dont. Kids are fekking EXPENSIVE and compromise a huge part of our monthly budget.

 

[Other Pineapple Smurf]

http://www.timeslive.co.za/sundaytimes/2011/10/23/we-are-drowning-in-debt....
The highlight for me in the article is the couple with 6 credit cards, why 6 credit cards?...

This couple are now doing the credit juggle, something I'm glad I got out of. There is a wonderful book called "The Simple Dollar" about a guy that got out of debt. Only read a short bit of it but it actually helped me get out of some of my debt and stay out - still got a lot of debt but I'm better off each month.

Hardest part of getting out of debt is the sacrifice one needs to make. You need to start giving up on having things and thats the hard part. After a few months I no longer miss those things I gave up and I wouldnt say the quality of my lifestyle has decreased either, would say its improved as I no longer stress each month on how I'm going to pay the bills.