Debtfree Issue 202402 - DB

ates, inflation and poor growth had a major impact on consumers’
disposable incomes – making it more difficult for credit-active
consumers to afford the re-payments.
So, what can we do while the external economic factors and
challenges are running its course?
DebtBusters offers these top three tips to manage your debt
effectively:
It’s important to differentiate between debt and credit. When credit
becomes a burden, and you find it difficult to afford your monthly
repayments, you are in debt. If you find yourself in this situation, you
need act and find ways to better manage your debt and to get back
on a sound financial footing.
1. Check and understand your credit score.
A good credit score indicates that you are paying and
utilising your credit agreements well, increasing your
chances of accessing credit and better interest rates. But
circumstances change, and a good practice is to view
your credit score at least once a month to ensure you stay
financially “healthy” and are aware of any risks. By law you
are entitled to a free credit report from one of the credit
bureaus annually, but there are also plenty of free online
tools available which allow you to check your score as
often as you like (see link at the end). Contrary to what
many people believe, doing this will not negatively affect
your credit score.