Recognising that you're too deep in debt before it's too late can mean the difference between losing some sleep and losing your home. 1. You miss an instalment "This is usually the first sign that a consumer is in serious trouble," says Eunice Sibiya, head of consumer education at First National Bank. It's one thing to run out of money before your salary drops into your account at the end of the month, but it's another, more serious, problem if you aren't able to pay your creditors a full instalment once you've been paid. It indicates that you are overindebted. If you're paying 40% of your salary to service debt, says Jacob Ramonti, a Soweto-based debt counsellor, that's too much. If you aren't able to pay a creditor in full, you need to take an honest look at your situation and then list all your debts, their balances and interest rates. Also include the minimum monthly repayment for each. This will give you a clear picture of how much you owe, says Francois Viviers, the executive ...
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