When I was a little younger people talked about property investments and using the banks money to leverage ones purchases.
The strategy was a simple one, borrow money when it was available and invest in something that was increasing in value. The increase should be looked at over a long period of time and needed to be higher than the cost of the loan.
What happen to the interest rates in South Africa a few years ago was not factored in to this equation. I bought 5 properties in a 3 year time frame with most of them receiving an 85% mortgage from the banks. At that time it was easy to pay the mortgage because the rentals received almost covered the loan payments. Today is a very different story.
With so much money going out and no enough coming in I was unable to keep up with payments to many of the properties I own and items like cars, rates and taxes and school fees.
I began using my credit cards to cover many of these items because cash was not available and credit card companies encourage spending large amounts, they practically threw lines of credit at me.
Cash and credit eventually ran out and I was unable to pay any of my debts. Letters began arriving demanding payment. The pressure was building day by day especially with a family to provide for.
I was then told about the National Credit Regulator and the Credit Agreements Act.
These were setup to protect the individual from prosecution and destruction at the hands of one’s creditors. First I went for Debt Relief Counselling. My counsellor basically took over my debt management. The best thing is that once I was officially under NCR Debt Counselling all the letters and harassments had to stop. Once I admitted I had a Debt problem and began receiving Debt Consolidation Relief things took a positive turn for me. My Debt Counsellor and I worked out an affordable payback strategy that my creditors were happy with and that I could afford.
I now have Bankruptcy Debt Relief on my side and in a few years my family and I will be in the clear.
If my story in any way sounds like yours then get on the phone today and get Debt Consolidation Counselling working for you.