Feeling smothered or anxious? Patterns of avoidance in the relationship? It may be time, to spend more time, on your relationship with your finances and create a healthier space.
In a South Africa where credit is sold on every street corner and is probably more readily available than electricity, it's easy to develop an unhealthy relationship with debt. Don’t take the approval for credit by a credit provider as an endorsement that the credit is good for you or, that you can actually afford it. While financial institutions improved their affordability assessments over time, these are system-driven and may not take account of all your financial circumstances.
How much debt do you have? Taking on too much debt has negative consequences. Many of us have experienced the stress and heavy burden that comes with mounting bills and loan repayments, wondering if we'll ever break free from the cycle.
At ZenMunni, we understand these challenges all too well, which is why we offer holistic debt management services aimed at not just alleviating the numbers on paper and actual debt balances, but also transforming your mindset towards debt and finances in general. Let’s consider three positive relationship behaviours that you should have with your credit and three that you should recognise as destructive.
First, the good behaviours…
· Communication In any relationship communication is key. Communicating with a trusted person about your finances regularly helps you to remain financially accountable, achieve your financial goals, and prevent the development of bad financial habits. If you have a partner, both discuss and agree to hold each other accountable regarding the correct use of credit.
· Balance Not all credit is bad. Credit can help you purchase property and a vehicle - assets that can help you generate more income. To do this you often have to build your credit score which means taking on short-term credit with a retail store. The problem with this is that this implies it’s ok to use credit for consumable items like clothing. Do not get into the habit of using credit for consumable items. Credit should be reserved for emergencies and assets that build your wealth-generating potential such as vehicles, property, or improving your education. Yes, you can borrow for a holiday, but you really are just throwing money away, rather than training yourself to save.
· Respect Credit is like fire, not to be disrespected and mismanaged. The correct use of fire drove steam engines that enabled the industrial age and it put rockets on the moon. Credit too can help us leverage our circumstances to move on up in life. However, like fire, mismanaged credit can also set our financial lives alight leaving a trail of destruction if left unchecked.
Now the destructive behaviours you should arrest immediately…
· Familiarity The superabundance of easy credit may have you becoming too familiar with credit and taking your credit partner for granted. Taking your partner for granted in a relationship is never a good thing. Remember, credit is never free, and never easy to pay back.
· Avoidance behaviour is a maladaptive form of coping in which a person changes their behaviour to avoid thinking about, feeling, or doing difficult things. Trying to avoid debt commitments or the associated stressors that come with too much debt is an ineffective response that we all need to grow out of.
· Ignorance Being unaware of one’s finances can foster an environment where we keep spending unaware of the danger at hand. At ZenMunni we encourage what we call “money mindfulness” which simply means, daily reviewing your spending and bank balance. Not having a budget is another common pitfall.
Debt Counselling and Review with ZenMunni -
A Comprehensive Approach
Our services are aligned with the National Credit Act (NCA), ensuring we provide a full, transparent, and confidential service. We start by conducting a thorough review of your financial situation to determine if you are over-indebted. If we find that you are over-indebted, we step in to represent you before your creditors, consolidate your debt, and negotiate reduced repayments. Throughout this process, we safeguard critical assets such as your primary home and vehicle. During the process of debt review, a freeze is placed on any further borrowing as required by the NCA.
Crafting a Personalised Plan
Once the initial review is complete, we work with you to create a budget plan tailored to your circumstances. This plan isn't just a set of numbers; it's a roadmap to financial freedom. We equip you with the tools and knowledge needed to manage your debt effectively.
Ongoing Support and Monitoring
Debt management is not a one-time fix. We understand that sticking to a plan can be challenging, which is why we follow up with you monthly. Our team is here to support you, offering guidance and encouragement as you work towards your financial goals. And when you make it through to the end of your debt review plan, we are going to celebrate with you and then provide you with next steps; a new vision to build your finances to a position of strength.
Debt Review for a Clean Slate
For clients struggling with debt, our debt review process offers a clear path forward. On completing the plan, we issue a clearance certificate, and you are then ready to participate in the credit market once again. However, once you come out the other side of debt review, we will encourage you to maintain your momentum and discipline and rather convert what you were paying towards debt into building your wealth through investing.
Your finances will be with you for the rest of your life. You should be on good terms with each other. Ready to transform your relationship with debt? Embark on your journey towards financial liberation today.
Reach out to us at 087 183 5012 or email info@zenmunni.co.za to take the first step. We are confidential, understanding, and qualified to get you back in control. Let's work together to move you from the Red Zone to the Zen Zone, where debt is no longer a burden but a pathway to a brighter financial future.
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