Warning Signs You Could Be Heading for Financial Disaster

5 signs to look out for.

There will be days when cash flow is smoother than usual and you're rolling in dough. And then, there are the days when money is tighter than usual, and you're struggling to keep your head above water.

You'll often find yourself waking up in between these two scenarios, so it's important to know the signs that indicate your time is running out. Here are a few pointers which you should look out for:

1. You do not have any savings accounts.

Set aside some time to build a plan around saving some money. Make sure you give yourself some wiggle room, but don't go over the top and apportion too much of your paycheck to your savings account.

When it comes to setting your goals, when do you want to have enough saved up? Let's say in six months - do you have to put six months worth in the bank at one time? No! If you're able, try saving up incrementally rather than making huge transfers out of every paycheck - this will help lower immediate spending because it'll feel less painful when you do spend.

2. You pay penalties and late fees often.

Set up bill reminder notifications and payment scheduling in advance. You can create debit orders for some of your bills, scheduling them for a specific date that you know you will have money in your account. A good idea is to schedule them as close as possible to your salary date.

3. You have stopped trying to pay off your debt.

If you're overwhelmed with financial debt, reach out to a debt consultant regarding help with paying off your debt. The longer you wait, the more interest will pile-up and negatively influence your credit score.

4. You do not have a budget.

Setting up a budget, or having someone set it up for you, will help you stay on track with your spending. If you don’t have a clear picture of how much money is coming in and how much you spend each month, it can be very easy to get into debt. It’s important to create a plan that outlines where your income is coming from, how much you can spend on everyday items, and what businesses or individuals are charging you interest rate for credit cards.

5. You have been declined for a loan.

Make an effort to increase your credit score. If you've been denied a loan, this likely means that your credit profile needs improvement, or you may have negative information on the report. Request the details of your report and be sure to examine it fully. Check to see if any outstanding loans will be affected by payments that are late or paid off, as well as any other instances that would lower its score.

Make an effort to pay bills on time and limit additional applications for new credit so you can invest in making payments instead. If you carry little debt, this should help up your credit standing without excessive work!

For more advice on how to manage your debt, consult Credit Health.

  • 10 common credit score myths.
  • 5 ways to pay your credit card debt.
  • 8 most common credit terms.
  • A Guide On How To Get Out Of Debt.
  • Blacklisting, is it still a thing?
  • Breaking Bad Debt.
  • Build Your Credit Score While You’re Young
  • Can I Get A Loan While Under Debt Review?
  • Can Your Credit Score Affect Your Job?
  • Check Your Credit Report For Signs Of Fraud
  • Common myths about debt review.
  • Debt Management Tips.
  • Debt Review Is A Good Idea.
  • Default, Judgement, Sequestration.
  • Disputing Errors on Credit Reports
  • Free VS Paid Credit Reports.
  • Frequently Asked Questions about Debt Review.
  • Get your credit report before applying for a loan.
  • Get Your Credit Score Back On Track
  • Good Debt Can Build Your Credit Score.
  • Hard VS Soft Inquiries On Your Credit Report.
  • Have I Been Blacklisted?
  • How do I get late payment entries removed?
  • How Do I Manage My Debt When I Am Unemployed?
  • How do I read my credit report?
  • How is your credit score calculated?
  • How Is Your Credit Score Weighted?
  • How Long Does Debt Review Last?
  • How To Calculate Your Debt-To-Income Ratio.
  • How To Clear Your Name At Credit Bureaus.
  • How To Improve Your Credit Score After Debt Review.
  • How To Qualify For New Credit With No Credit Score.
  • How To Reduce And Eliminate Debt.
  • Judgements, Administrations and Listings
  • Online Shopping – Just (don't) add to cart!
  • Teaching Children Good Money Sense.
  • The Best Way to Manage your Store Credit Card Account
  • The Pros And Cons Of Debt Counseling.
  • Things You Don't Want To See On Your Credit Report.
  • Tricks To Help You Save While Paying Off Debt
  • Understanding a credit report in South Africa.
  • Understanding Debt Consolidation Loans in South Africa
  • Vehicle instalments driving you to despair
  • Warning Signs You Could Be Heading for Financial Disaster
  • What Affects Your Credit Score?
  • What are credit bureaus and how do they work?
  • What causes credit card debt?
  • What do credit bureaus know about me?
  • What Effect Does Your Credit Report Have On Your Interest Rates?
  • What Happens To Your Credit When You Get Married?
  • What Happens When I Skip A Debt Payment?
  • What Happens When You're Debt Free?
  • What is a credit score?
  • What is a credit utilization rate?
  • What Is A Decent Credit Score To Buy A Car?
  • What Is A Good Credit Score If You Want To Buy A House?
  • What Is A Hard Inquiry And How Does It Affect Your Credit Report?
  • What Is A Soft Inquiry And How Does It Affect Your Credit Report?
  • What Is Considered A Bad Credit Score?
  • What is considered a good credit score?
  • What Is Debt Administration?
  • What Is Debt Counseling?
  • What Is Debt Review?
  • What’s the difference between your credit score and your credit report?
  • Which Type Of Credit Carries The Most Risk?
  • Why Debt Counseling Is Perfect For You.
  • Why Did My Credit Score Go Down?
  • Will checking my credit report affect my credit score?
  • Your Best Defence Against Identity Theft Is Your Credit Report
  • Your Credit Score: The Basics.
  • Show More

    Check for arrears accounts

    In order to help you on your way to Credit Health, we've teamed up with Transaction Capital Recoveries and MBD Inc. By selecting continue, you give consent that we may check for any arrear accounts on your behalf.

    Funeral Cover Application

    You will be redirected shortly to complete the signup process

    If you are not redirected, click here.