07 Oct

Debt Collection And Impending Recession

If you haven’t heard that South Africa is on the verge of recession, then you’ve heard it here first. Our status, being on the cusp of recession, is a result of the incredibly low levels of production and development.

Our stalling GDP growth rate can be blamed on the energy demands that are not being met by government. We can thank load-shedding for this. On top of this there is the increasing turbulence within the labour market as businesses and state-owned enterprises are almost continually locked in labour disputes and strike actions.

So, as more businesses cut down on staff, the increasing number of unemployed will certainly throw the country into a recession. Where production stalls and the country’s GDP takes a dive, individual households have to make plans to keep themselves above the breadline. It is an important time in your lives, and being exposed to high levels of debt will often result in many individuals being blacklisted. This fill force many into automatic or voluntary insolvency.

For this reason, a little recession planning may be in order. Recession planning for the individual and his/her household will require that:

  1. Breadwinners make plans for their retirement if they have not already done so.
  2. Households should budget, work out monthly expenditures and ensure that they do not take any financial risks in this turbulent time.
  3. Formulate a financial plan for both the immediate future, as well as a five-year plan and a long-term financial strategy.
  4. Ensure that they save money in unit trusts, investment accounts, retirement annuities or pension funds, and even offshore, if they have money to spare.
  5. Make sure that they keep an amount on standby in a savings account in case of dire emergencies.

Following these simple recession planning measures can be the difference between drowning in debt or keeping your head above water in the coming year. Remember: as recession hits, creditors are more likely to deploy stricter measures in collecting monies from debtors.

If you require a skilled and adept debt collection attorney, or if you require legal assistance with defended actions or matters of insolvency, then make sure you contact Ivan Zartz Attorneys today.