South Africa’s facing a massive debt
problem and battling to repay their loans.
And “once … loans become a garnishee order, some of are even paying back 10 to 12 times their original loans,” writes Gavin Fourie in Rich Secrets.
Now, the debt collector
industry is “scrambling to find a way to save the tarnished garnishee system
as the state threatens to abolish it entirely”, due to abuse of the garnishee system
from collections attorneys, says Moneyweb
Some of the garnishee
‘abuse’ mentioned includes collections attorneys getting garnishee orders
from courts for the address of the employer of garnished employees, which is illegal if the employee hasn’t given his consent, confirms Fin24
A key amendment that’s being discussed is capping the maximum amounts that can be garnished off a salary, so that employees facing a garnishee order
no longer “take home zero or near zero paycheques,” adds Moneyweb
But these changes are still a long way off.
If you’re living in debt
, there’s a way to pay off your debt
without facing this scary situation.
And you won’t have to take out a loan or have a garnishee order
added to your salary.
Avoid a garnishee order by putting your annual increase or bonus aside to pay off your debt!
All you have to do is follow Fourie’s advice.
He recommends that you keep your spending and lifestyle exactly as it is currently – but of course, cut back on the luxuries for now.
Then, you take your annual increase or bonus and set it aside each month to pay off your debt.
Don’t even think of using it for a holiday or big purchase that you don’t need.
Fourie says this strategy could help you pay off your debt
the fastest, without feeling the effect of having to make more or spend less money – and without the excessive interest you’ll face if you take out a loan that eventually becomes a garnishee order.