How to Determine If You Might Be Over-Indebted and Require Debt Review

Debt can work in your favour when handled strategically, but once it starts piling up, it can quickly become a serious source of chest pains and sleepless nights. If your monthly budget feels more like a juggling act than a plan, you’re not alone. Many South Africans find themselves overwhelmed by credit repayments, unsure if they’re simply under financial pressure or truly over-indebted.

The good news? Solutions like Zero Debt reviews, debt counselling and debt consolidation can bring you immediate relief and remove that feeling of drowning.

Our team of experts have put together a helpful list of warning signs that you can look out for and what you can do to regain financial stability. Facing your debt head-on with Zero Debt is not just smart, it’s life-changing.

1. Struggling With Living Expenses

When your entire salary disappears before mid-month and you’re using credit just to get by, it’s time to pause and reflect. If your groceries, transport, rent or school fees rely on overdrafts or credit cards, your income may no longer support your lifestyle. This is often the first signal that you’re heading towards over-indebtedness.

2. Borrowing From Peter To Pay Paul

If you’re rotating debt i.e. using one credit facility to settle another, it might feel like you’re surviving, but in reality, you’re sinking deeper. This cycle can quickly snowball, especially with high-interest unsecured loans. Debt consolidation through Zero Debt can simplify your repayments into one affordable monthly instalment, easing this ongoing pressure.

3. Skipping Payments Or Only Paying The Minimum

It’s one thing to forget a debit order, but if you’re consistently skipping payments or only managing minimum repayments, your debt is likely growing instead of shrinking. This is where debt counselling can step in and make a real difference. A counsellor will help you negotiate lower repayments while protecting your financial future.

4. Getting Calls, Emails Or Even Legal Threats

When creditors start calling non-stop, or worse, send legal letters, it is a clear red flag. Under debt review, Zero Debt will deal with your credit providers on your behalf. They can no longer harass you directly once you’re under review, giving you much-needed breathing room and legal protection.

5. Maxed Out & No Room For Emergencies

If your cards are maxed and you have no access to emergency funds, your financial health is under serious strain. Not having a buffer puts you at risk of deeper debt if an unexpected cost, like medical bills or car repairs, arises. Debt review can help you rebuild control and even restore your creditworthiness over time.

6. No Savings & A Growing Sense Of Panic

No rainy-day fund? You’re not alone. According to the South African Reserve Bank (SARB), the outstanding balance of household debt in South Africa amounted to R2.783 trillion in the second quarter of 2023. In the second quarter of 2024, SARB reported that household debt equalled 62.2% of nominal disposable income.

These figures highlight the widespread financial strain many are experiencing. Debt review doesn’t just ease repayment pressure,  it gives you space to breathe and rebuild savings habits.

7. No Sleep & Soaring Stress

Debt doesn’t just hit your wallet, it hits your wellbeing. Anxiety, sleepless nights and relationship strain are common. This can lead to health problems which exacerbate your financial strain even further. The mental fatigue that comes with this can affect your income as well. It is a vicious circle that can be broken and reversed with the power of a Zero Debt review. Our team will handle your situation with care and confidentiality, helping you find a way forward without shame or judgment. Your financial success is our success.

Take Stock With A Clear Head

If you’re unsure whether you qualify for debt review, take a few minutes to use our free debt calculator. It’s simple, confidential and gives you a clearer picture of where you stand, no strings attached. Take your first step to becoming debt-free and let us help you protect your assets, your health and your peace of mind.

Let’s Talk About Solutions, Not Just Problems

Over-indebtedness isn’t a life sentence, it is a financial situation that can be solved with the right plan. Our debt review, backed by the National Credit Act, offers legal protection, lower interest rates and a single affordable monthly payment. At Zero Debt, we’ve helped thousands regain control, protect their homes and cars, and sleep better at night.

Take control, call us and improve your quality of life with Zero Debt reviews and debt counselling today!

FAQs & Answers

1. What are the signs that I may be over-indebted?
   If you’re struggling to cover basic living expenses, relying on credit to survive, skipping payments, or feeling overwhelmed by debt, you may be over-indebted.

2. Is using credit for groceries and rent a red flag?
   Yes, relying on credit to pay for essential expenses like groceries, transport, and rent suggests your income may no longer support your lifestyle and is a warning sign of over-indebtedness.

3. What is the risk of using one credit facility to pay off another?
   This creates a debt cycle that can quickly spiral, especially with high-interest loans. It’s a key sign that you may need debt consolidation or debt review to break free.

4. Can debt review stop creditor harassment?
   Yes, once under debt review, creditors must communicate only with your debt counsellor. This legal protection gives you space and peace of mind.

5. How does debt review help if I’m only paying the minimum on debts?
   Debt counselling can help reduce your monthly repayments and interest rates, making your debt more manageable and helping you pay off what you owe more effectively.

6. What if I have no savings or emergency funds?
   Not having a financial buffer puts you at risk during emergencies. Debt review helps restructure your repayments and can enable you to rebuild savings over time.

7. Does being in debt affect my health and wellbeing?
   Yes, debt can lead to anxiety, sleeplessness, and relationship strain. A structured plan like debt review can relieve this pressure and restore emotional balance.

8. How can I check if I qualify for debt review?
   You can use Zero Debt’s free debt calculator to assess your situation confidentially. It gives you a quick snapshot of your financial health with no strings attached.