With millions of South Africans caught up in the credit cycle, why should you become debt-free? Benefits far outweigh the cons of living a life free of creditor harassment and the constant fear of not being able to make monthly instalments.

Let us look at the top benefits of being debt-free, helping you to understand why living without credit can be an advantage.

  1. Free Up Money

Every store account, credit card, and overdraft facility increases the risk of becoming insolvent. With all your money tied up in paying accounts, you do not have cash free for holidays, savings, and investments. The bathroom remodelling project stays a far-off dream, and you cannot afford to leave the corporate world to start your own venture. One of the benefits is having hard cash available for emergencies, opportunities, and enjoyment.

  1. Retire While You Are Still Young

The money that goes towards the payment of debt can be saved and invested. With the help of a financial planner or business mentor, you can make use of superb investment growth opportunities. Having built-up sufficient funds in your fifties can mean earlier retirement. This translates into more time to enjoy life to the fullest.

  1. Best Risk Management Plan Ever

In the perfect world, you would not need money to get material things. But you have to pay for food, clothing, security, schooling, fuel, medical expenses, and more. The moment credit is used for life’s necessities, you are in trouble. Add to the liabilities crunch debts, such as home mortgage and vehicle finance, and the pile grows to the size of Mount Everest. Instead of enjoying debt-free benefits, you work to pay creditors. If you work for a salary and have several credit accounts, you therefore live one month away from bankruptcy. With no savings for emergencies, any unforeseen situations become critical. One significant emergency can push the finances over the edge, leaving you at the mercy of creditors.

  1. Live Fear Free

Being without credit liabilitiemeans being able to sleep at night without having to stress about finances. Living with many credit accounts and the struggle to juggle between the bills has the opposite effect. You constantly fear having to answer phone calls. Creditors often harass you and threaten with legal action. The fear of losing all your assets and still being responsible for paying the creditors can affect your health and family relations.

  1. Superb Credit Score

A credit score of over 700 points puts you up there with the best-of-the-best. You are in the perfect category should you ever need emergency funding, a loan, or investment. You are the type of consumer that every creditor wants. The low risk profile is only possible if your credit exposure is low. This means having a low debt-to-income ratio. Becoming debt-free affords benefits, such as an outstanding credit score, which is helpful when you want to apply for a home loan or business finance. The dream job is also up for grabs since employers prefer candidates with solid credit histories and low debt exposures. When it comes to renting a place, you stand first in line if the house is within your affordability category.


You can afford preventative health care because cash is at hand. If you need to relocate, money is available for the furniture removal and deposit on the new abode. You pay less for items because you don’t pay interest on credit. You thus save money, helping you to grow financially stronger every day.


If you have exhausted the means to pay off or get rid of the credit mountain, do not despair. There is hope beyond the credit cycle. You can apply for voluntary sequestration to have up to 80% of the debt written off. It makes it possible to live debt-free.

Though you can expect to lose some assets in the process, it is a viable solution if your liabilities have grown to the size of a small mountain. If you are insolvent, you can apply to be declared bankrupt. One of the benefits is that your creditors cannot harass you anymore. The amount is paid off through the sale of assets. If there is a shortfall, it can be paid off over a period of 18-24 months without added interest. An end to the credit nightmare is in reach.

Give us a call for more information on how you can experience debt-free benefits through voluntary sequestration.

Disclaimer: This article is for information purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant as at the date of publishing.