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You Need to Know

You cannot fix your debt if you do not know exactly how much you owe.

Many people feel stressed about money but have never actually added up the real numbers. Some avoid looking because they are afraid of what they might find. Others have moved house, changed email addresses, or stopped opening statements. In these situations, debt grows quietly in the background.

The first step to taking control is simple: write everything down.

Step 1: Get a Pen & Paper

Start with a blank piece of paper or open a spreadsheet on your computer.

Write down the names of every person or company you think you owe money to. Include banks, clothing stores, vehicle finance, personal loans, credit cards and small loans. Do not worry if you are not sure of the exact amounts yet. The goal at this stage is simply to build a list. This becomes your working document.

Even if it is incomplete, it gives you something solid to work with instead of just a feeling of stress.

Step 2: Draw a Credit Report

Once you have your list, the next step is to check it against your credit report.

In South Africa you can request a credit report from major credit bureaus such as TransUnion, Experian, or Compuscan. Many bureaus allow you one free credit report per year. To get that, you may need to register online and confirm your details.

Once you have the report, compare it to your handwritten list.

    • Do the accounts match?
    • Have you forgotten a store card you opened years ago?
    • Is there a small loan you stopped thinking about?

Update your list so that it includes everything shown on the report.

Step 3: Don't Forget Money From Friends and Family

It is important to remember that a credit report will not show money you owe to family members, friends, or informal lenders.

If your uncle lent you money or you borrowed from someone in your community, that will not appear in the report but you still owe that money. You should add those amounts yourself.

After all, if you borrowed from a local Mashonisa they will be wanting their money back…or else.

Your goal is to create one full picture of all your debt, not just what the banks report.

Step 4: Check Statements and Banking Apps

Now you need to update the amounts in your list.

The balances on your credit report may not be fully up to date. Log in to your banking apps or check the most recent statements sent to you by email or post. Compare the figures and use the most current balance available.

Also note the monthly instalment each credit provider expects you to pay and, if possible, the interest rate charged on that account. If you have stopped receiving statements because you changed your phone number or email address and never updated your details, the credit report can help you identify those accounts again. In that case, contact the credit provider and ask for your latest balance and payment details.

Important note: When asking for information about older accounts, be careful not to say that you agree that you owe the money. Rather say something like, “the amount that you think I might owe you.” This is because older accounts can prescribe if you do not pay or acknowledge them for more than three years.

Step 5: Get the Calculator

Once every debt has a balance next to it, begin to add the figures together.

First, add up what everyone wants you to pay each month.

Then add up the total amount you owe overall. This can be uncomfortable. The number may be higher than you expected. But clarity is powerful. When everything is written down in one place, you move from fear to facts.

‘The number may be higher than you expected’

With this information in front of you, you can start to see patterns. You may notice one small account that could be paid off quickly. You may identify an account with a very high interest rate that is costing you a lot over time. You may realise that your monthly instalments are more than your income can comfortably support.

These insights are difficult to see when everything feels scattered. They become clear when the numbers are organised.

Step 6: Do You Need Help?

If this process feels overwhelming, you do not have to do it alone.

An NCR registered debt counsellor can pull your credit report, confirm your balances, and help you understand your options. Sometimes having a trained professional look at the numbers removes the emotional pressure and replaces it with practical advice.

National Debt Awareness Month

Understanding the full extent of your debt is not about stressing yourself.

It is about giving yourself the information you need to make good decisions.

‘Most people actually avoid thinking too deeply about their debt because it is scary’

Most people actually avoid thinking too deeply about their debt because it is scary to add the numbers up. They worry they won’t know what to do about it, so they prefer to live in ignorance and let things slowly spiral out of control. Thats a big mistake.

Once you know exactly how much you owe and to whom, you are no longer guessing. You are planning. And that is where real progress begins.