Five reasons people seek debt help

People seek debt help for reasons as varied as the people themselves. Whether it’s an unexpected turn of events or a gradual build up of problems, facing debt problems is always a worrying time, but thankfully there are a number of debt counselling services available. The top five causes of debt range from the unexpected to a ‘dripping tap’ effect.

Credit card debt

One of the primary causes of the economic recession was the ease with which ordinary people could run up thousands of Rands of debt on ‘easy credit’, and with the interest charges on credit cards being higher than the base rate by a considerable amount, credit card debt is a growing problem. Many people solve runaway credit card debt by looking for debt consolidation help.


In the SA 24.9% persons are facing unemployment in 2009. The financial buffer of a regular income can be ripped away very quickly and because savings are at an all-time low in SA, very few people have the money put by to cover themselves in case of unemployment. Losing your job can mean rapidly mounting debt in a very short space of time. If you lose your job and can’t make your payments you need to act quickly; start with government debt advice – they can recommend an appropriate debt management solution.

Illness and divorce

Illness can put you out of work for the long term, and even if you keep your job you will only be eligible for statutory sick pay – a far lower amount than your usual income. Divorce and separation can also be a financially trying time leading to debt, as people have to reassess their lifestyle and their outgoings. A good debt management service will understand the implications that personal problems can have on debt.

Poor financial management

The ‘dripping tap’ effect, poor financial management and a temptation to adopt an ‘ostrich’ syndrome to mounting debts won’t make the problem go away. Perhaps one of the easiest areas to tackle, poor financial management can be quickly turned around with the right debt advice and help.

Failure to maintain credit agreements

If you are committed to credit agreements and you fail to maintain your end of the bargain, the interest charges can start to mount up. Creditors will start chasing for payment (and charging you for the privilege), but again, this is an aspect of financial management that can be tackled relatively easily to get you back on track.