Debt Health Check

Learn how to get your debt under control. Take our debt health check to work out and determine your level of debt and see how you can get back on track with your finances.

What is a Debt Health Check?

A debt health check is a comprehensive assessment of an individual's financial situation, specifically focusing on their debt levels and overall financial health. This financial assessment helps in understanding the current debt obligations, identifying potential financial risks, and developing strategies to manage or reduce debt effectively.

Taking a debt health check is a crucial first step to regaining control of your finances and improving your quality of life. Being deep in debt means you are unable to focus on saving and investing, which are essential for building wealth. The only way to work your way out of debt is by first understanding your financial situation and creating a solid plan. This plan should include developing good money habits such as avoiding new debt, spending less, and staying committed to your financial goals.

WHAT ARE THE COMPONENTS OF A DEBT HEALTH CHECK?

1. Credit Report and Score Analysis

• Obtaining and reviewing credit reports to check for accuracy and identify any negative items affecting the credit score.
• Understanding the current credit score and factors influencing it.

Doing a credit check and taking the debt quiz as a first step will mean you are closer to having everything under control. To get a free credit report for a credit check click the links below or fill in the callback form or the contact us form and we will give you a call back.

To take a debt quiz CLICK HERE. 

Identity theft is real, we will protect your credit information by asking you to provide consent first before we can proceed and pull up your credit report. 

2. Review of Current Debts

We list all your outstanding debts, including credit cards, loans, mortgages, and other liabilities. We analyze all the interest rates, minimum payments, and due dates for each debt to keep track of your obligations. Next, we compare interest rates and terms of your existing debts to identify opportunities for refinancing or consolidating loans at better rates. Finally, we calculate your debt-to-income ratio by dividing your total monthly debt payments by your gross monthly income to evaluate your debt levels relative to your income.

3. creating a Budgeting

Creating or updating a budget is essential to ensure that debt repayment remains a priority while planning for future expenses and financial goals without incurring additional debt. This process involves a thorough assessment of your income and expenses, analyzing monthly income from all sources, and categorizing and tracking regular expenses to understand your cash flow. Additionally, it is crucial to assess the availability of an emergency fund and other savings to cover unexpected expenses without increasing your debt.

4. Financial goals and Priorities

Setting short-term and long-term financial goals is essential for creating a clear roadmap to financial stability and success. This involves identifying your immediate financial needs and future aspirations, such as paying off a credit card or saving for retirement. Prioritizing debt repayment strategies is a crucial part of this process, focusing on paying down debts with the highest interest rates first or addressing other personal financial priorities. By doing so, you can effectively reduce your debt burden while steadily working towards your broader financial objectives.

5. Debt Repayment solutions

Exploring different repayment strategies can significantly impact your debt management plan. You might consider the snowball method, which involves paying off the smallest debts first to build momentum and motivation, or the avalanche method, which targets the highest-interest debts first to minimize interest costs over time. Additionally, evaluating options such as debt review, debt consolidation, or refinancing can help streamline your repayments and potentially reduce your interest rates, making it easier to manage and eliminate your debt more efficiently.

Why is A Debt Health Check Important?

By conducting a debt health check, individuals can gain a clear understanding of their debt situation, make informed decisions, and take proactive steps to improve their financial health.

Furthermore, if you are not happy and feel that your information with the credit bureaus is not up to date, we can also assist in the following ways:

• obtaining your credit report and helping you study and understand the information listed on your credit report;
• negotiating repayments to settle outstanding debts to have the information removed;
• identifying information that qualifies for removal from your credit report, for example, in the event the debt has been prescribed in terms of the Prescription Act 68 of 1969;
• identify information that does not qualify for removal, and advise what can be done to remove this information from your credit reports.

how do I LODGe A dispute with the credit bureaus?

Lodging a dispute with the credit bureaus involves several steps. It is well within your rights to lodge a dispute on incomplete or inaccurate information appearing on your credit report. According to Regulation No. R. 144 of the National Credit Regulator, credit bureaus must comply with the request to remove adverse consumer credit information and information relating to paid-up judgments. A consumer can and has a right to lodge a query or complaint with the credit bureaus.

After carefully reviewing your credit reports for any errors or inaccuracies. Common errors include incorrect personal information, wrong account details, accounts that don’t belong to you, or incorrect payment statuses.

Here is a detailed guide to help you through the process:

Gather Supporting Documentation

Collect any documentation that supports your dispute. This might include bank statements, receipts, letters from creditors, or any other relevant documents.

Write a Dispute Letter

Draft a dispute letter to the credit bureau(s). Your letter should include:

• Your full name and address
• A clear identification of the disputed item(s) on your credit report (e.g., the account name and number)
• A detailed explanation of why you believe the information is incorrect
• A request for the item to be corrected or removed
• Copies (not originals) of supporting documentation

Submit Your Dispute

You can submit your dispute online, by mail, or by phone to each credit bureau:

Below are the credit bureaus to complain about your profile in South Africa.

Transunion

• www.transunion.co.za
•  Phone: 0861 482 482  

Experian

•  www.experian.co.za
• Phone:  0861 105 665

XDS 

•  www.xds.co.za
• Phone: 011 645 9100

We are here to help. Let us call you back. Send us your details via the contact form and we will call you back for a debt health check.