Debtfree Issue 202402 - DB
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ates, inflation and poor growth had a major impact on consumers’<br />
disposable incomes – making it more difficult for credit-active<br />
consumers to afford the re-payments.<br />
So, what can we do while the external economic factors and<br />
challenges are running its course?<br />
DebtBusters offers these top three tips to manage your debt<br />
effectively:<br />
It’s important to differentiate between debt and credit. When credit<br />
becomes a burden, and you find it difficult to afford your monthly<br />
repayments, you are in debt. If you find yourself in this situation, you<br />
need act and find ways to better manage your debt and to get back<br />
on a sound financial footing.<br />
1. Check and understand your credit score.<br />
A good credit score indicates that you are paying and<br />
utilising your credit agreements well, increasing your<br />
chances of accessing credit and better interest rates. But<br />
circumstances change, and a good practice is to view<br />
your credit score at least once a month to ensure you stay<br />
financially “healthy” and are aware of any risks. By law you<br />
are entitled to a free credit report from one of the credit<br />
bureaus annually, but there are also plenty of free online<br />
tools available which allow you to check your score as<br />
often as you like (see link at the end). Contrary to what<br />
many people believe, doing this will not negatively affect<br />
your credit score.