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Fiji Time: 6:57 AM on Monday 20 May

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Managing your debts

Avinesh Gopal
Monday, July 16, 2012

THERE comes a time in every person's life when a loan has to be taken for something or items purchased on credit terms.

But while enjoying the things that have been bought in this way, some people tend to forget making the necessary payments.

To ensure they make the payments, some people end up in more debts by borrowing from other sources. Like other things affecting people daily, managing one's debts is one of the major problems faced by people.

Today, we look at how you can manage your debts and provide you with some tips to do the same.

MANY people take loans to buy a home, land, a vehicle or for any other purpose they deem fit.

Some, maybe a vast majority of people buy their household items on hire purchase, thus incurring interest and ending up paying more for that particular item.

And while juggling around to make the necessary payments, not forgetting feeding their families, some people are forced into more debts.

They are forced to go to moneylenders to pay the loans, bills, buy groceries, pay for transport and for other necessary things.

But in doing so, people incur more debts and some do not even realise that they have to pay back the money they have borrowed from moneylenders, with interest.

While some are able to manage their debts, many are unable to and they continue to live a life of paying off debts.

As such, the country's consumer watchdog says it is important for people or consumers to know how to manage their debts - the money owed to people or institutions.

"You have to pay that money back because it wasn't yours, you borrowed it," said Consumer Council of Fiji chief executive officer Premila Kumar.

"If you can't manage your money then you can't pay your debts.

"If you have to borrow, then it's a sign that you are in debt."

"Some people think that the problem ends by tearing the debt payment notices and throwing it in the rubbish bin."

Ms Kumar said some people who borrow money from here and there often have to juggle around to pay their debts.

She said people who do this and throw the debt payment notices in the rubbish bin are in need of help to manage their debts.

"That's where the Consumer Council comes in - we have been providing debt management services to people."

"We help consumers understand where their money is coming from and where it's going, and we also assist by creating a payment plan."

Ms Kumar said increasing revenue was the only solution for people to deal with their debts.

She said people have to analyse everything before buying things on credit, be it a house, car or anything on hire purchase to ensure they do not have excessive debts to pay.