Is this a need or a want?
Take some time to consider the reason why you need to extend your line of credit. What do you plan to use it for? You need to distinguish between a ‘need’ and a ‘want’. For instance, taking out credit for your studies or to buy a car to get to work is one thing, while doing so to cover the cost of a holiday or a fancy new AV set-up for your home is something else.
Could I rather save up for this rather than take out credit?
It’s no fun to wait for the things you want, we know. However, when it comes to nice-to-haves like air fryers, luxury luggage, and top-notch gaming consoles, it’s best to save up rather than take on credit. This is the tricky bit about being a grownup – you have to make choices like these to manage your money effectively.
What should happen if I lose my job?
Would you be able the cost of the repayments of the credit you plan to take on even if you got laid off tomorrow? Do you have enough savings to keep you coasting until you could find another gig? The economy is pretty unstable at the moment, and if you plan to add to your monthly expenses, you need access to liquid savings to cover repayments if things should go awry.
Do I need more advice about my current debt situation?
If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. Best of all, you can get R300 off our credit clearance services if you refer a family member or friend, and existing clients get 5% off their full outstanding balance.
Need legal advice? We can assist with that too! Submit your legal inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.