Banking Credit Finance Guide Money

How To Create New Credit Habits

The wise say that you need to follow through on good habits and get rid of the bad ones but this article is about credit habits so you can expect a new change in writing format because debts and credits need to be handled carefully so that the International Debt Collection Agency would not take you as a financial defaulter so let’s get to know about the review process involved in the game.

The debt review process is a wakeup call for most of us. While we go through the debt review process we start to see the error of our ways and realise how easy it is getting into debt, sometimes completely unnecessarily.

No more credit cards

South African consumers have become accustomed to living with credit cards, as supposed to using credit cards as a tool for emergency or convenient payment. Credit cards come in handy when we want to pay for airline tickets on the internet for instance. Or if we urgently need to access money due to unforeseen circumstances. There are many benefits to having a credit card, but while we repair our credit track record, it’s more beneficial to live by the motto “cash is king”. The majority of people, who are currently going through the debt review process, show a trend that indicates that they used their credit cards for day to day living. Credit cards with its exorbitantly high interest rates were never meant to be used for day to day living expenses.

No more in store cards

Consumers have also been convinced by big store names that it is safe and easy to purchase on credit. These in store purchasing cards range from clothing accounts cards to home décor store cards. Our debt counsellors warn consumers against activating any new cards that you receive via the post. Often we get in store cards with pre-approved credit for a certain amount – all that marketers ask is that we go to the store, sign the application form and the rest is history. Please destroy any new in store cards that you receive via the post by cutting the card in half and throwing it in the dustbin. Now is not the time to add to your debt pressure.

No more automatic annual insurance renewal

Make sure that you analyse any kind of insurance payments that you currently have. This can be car insurance, home insurance and household content insurance. Most insurance premiums renew themselves on an annual basis. This renewal occurs automatically and often very little or short term warning is given to us as consumers for avoiding this automatic renewal. Also, in many instances there is an increase to this insurance premium while offering exactly the same amount of cover. Be diligent with your insurance cover by shopping around for more options. When you find cheaper options that offer the same or even better cover, cancel your current insurance immediately and apply for cover through a better and more cost effective insurance company.

No more overly expensive medical aid

The same apply to your medical aid. encourages you to review what your current medical aid offer you, by comparing it to competitor medical aid companies. There are so many great medical aid companies that may not have the big prestigious name, but that actually offer you better medical aid for a lot less. When was the last time that you did this exercise? Or do you allow your medical aid to renew itself annually and subsequently increase each year without looking around to see if there isn’t a better product available to you?

No more expensive tax consultants

For those of us who have had the pleasure of working with tax consultants, who submit our tax on our behalf each year – while we can appreciate the value of these tax consultants, each year we wonder why we pay them so much. Sound familiar? would like you to consider a new and perhaps cheaper tax consultant before your next annual tax return. There are an abundance of tax consultants that provide really great service without taking such a big cut. If you have money due to you from the tax man, remember how hard you worked and what a big percentage of your salary went to tax. Don’t be fooled by overpriced tax consultants.

Linda Alvarado loves writing about technology and science updates. She also loves to keep her mind and body fresh by doing intense workouts and meditation sessions.