What to do once debt free?

What happens when you pay off a debt in full?

Paid in Full Definition

If you have an outstanding debt, one option is to pay off the full amount so your credit report no longer shows it as being due. This is an option even if it's late or in collections. If you choose to pay the debt off, your credit report will note that this account was paid in full.

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for building a strong credit profile, suggesting you have two active revolving accounts (like credit cards) open for at least two years, with on-time payments for those two consecutive years, often with a minimum $2,000 limit per account, demonstrating reliable credit management to lenders. It shows you can handle multiple credit lines consistently, reducing lender risk and improving your chances for approval on larger loans, like mortgages.
 

What's the worst thing a debt collector can do?

The worst a debt collector can do involves illegal harassment, threats, and deception, like threatening violence, lying about arrest, pretending to be a government official, or revealing your debt to others; they also cannot call at unreasonable hours (before 8 a.m. or after 9 p.m.), repeatedly call to annoy you, or misrepresent the debt's amount, but they can sue you for a valid debt and report it to credit bureaus, which is their legal recourse. 

How can I clear my debt in South Africa?

Your 5-step guide to getting out of debt in SA

1. The 3 biggest debt challenges South Africans face: ...
2. 1) COMMIT TO A DEBT-FREE WAY OF LIFE. ...
3. 2) CREATE A BUDGET AND START SAVING. ...
4. 3) CREATE AN EMERGENCY FUND. ...
5. 4) IMPROVE YOUR CREDIT SCORE. ...
6. 5) CONSIDER CONSOLIDATING YOUR DEBT.

What is the 11 word phrase to stop debt collectors?

The 11-word phrase to stop debt collectors is: "Please cease and desist all calls and contact with me, immediately." This phrase leverages the Fair Debt Collection Practices Act (FDCPA) (FDCPA) to legally require collectors to stop most communication, though they can still notify you of lawsuits or the end of collection efforts, and you must send it in writing for it to be effective. 

What is the $27.39 rule?

The "27.39 Rule" (often rounded to $27.40) is a personal finance strategy to save $10,000 in one year by setting aside approximately $27.40 every single day, making large savings goals feel more manageable through consistent, small habit-forming deposits. This method breaks down the daunting task of saving $10,000 into daily, achievable micro-savings, encouraging discipline and helping build wealth over time. 

Can I retire at 70 with $400,000?

You can likely retire at 70 with $400k, but it depends heavily on your spending and other income (like Social Security); using the 4% rule (around $16k/yr initially) plus Social Security could provide $36k-$40k+ total income for a modest budget, but you'll need strict budgeting and may need to reduce expenses or work part-time for a comfortable retirement, especially with potential healthcare costs. 

What is the 50/30/20 rule in South Africa?

In this rule, 50% of your income goes to necessities, 20% to long-term savings, and 30% to lifestyle choices. Remember, a budget is not set in stone and can be adjusted every month.

How do I activate money luck?

Activating "money luck" involves combining mindset shifts, practical financial habits, and Feng Shui/spiritual practices like cultivating an abundance mentality (positive self-talk, gratitude), taking smart financial actions (budgeting, seeking opportunities), and decluttering your space while incorporating wealth symbols like Chinese coins or citrine crystals. It's about creating an environment and mindset where prosperity feels possible, blending belief with tangible effort.
 

What is the rule of 69 in finance?

The Rule of 69 is a simple calculation to estimate the time needed for an investment to double if you know the interest rate and if the interest is compounded. For example, if a real estate investor earns twenty percent on an investment, they divide 69 by the 20 percent return and add 0.35 to the result.

What is the 1234 financial rule?

The number 1234, often seen as an "angel number," signifies financial progress, career advancement, and building stability through practical, step-by-step actions towards your goals, encouraging organization and persistence for future prosperity, rather than immediate wealth. It's a message about following your path, taking incremental steps, and trusting the process to manifest financial security, blending personal growth with material success. 

What is the smartest way to pay off debt?

The best way to pay off debt involves choosing between the Debt Avalanche (highest interest first, saves most money) or the Debt Snowball (smallest balance first, gives quick wins for motivation) method, alongside cutting expenses, increasing income (side hustles), and making minimum payments on all but your target debt. Consolidating high-interest debt with a 0% APR balance transfer card or a personal loan can also help, but always track spending and build a small emergency fund first to avoid new debt. 

Can you leave South Africa if you have debt?

If you move overseas and you decide to ignore your outstanding debt in South Africa, your creditor will take this as you defaulting on it and you will receive penalties for doing this. This could include debt collector fees, which can be hefty. You will also be charged interest on the entire lumpsum that's outstanding.

How do I know if I'm blacklisted?

Checking if you're blacklisted involves different methods depending on the context (jobs, credit, IP/email), but generally means looking for patterns like consistent rejection, getting a credit report from ChexSystems, using online tools for IP/email checks, or asking trusted contacts about your work reputation; the key is often spotting consistent negative outcomes or using specialized online checkers. 

What should you never tell a debt collector?

This validation information includes the name of the creditor, the amount you owe, and how to dispute the debt. If the debt collector doesn't or can't provide this information, it could be a scam. Never give sensitive financial information to the caller, at least not until you've confirmed they're legitimate.

What happens if you just ignore debt collectors?

Ignoring debt collectors escalates the problem, leading to worse credit, increasing debt (fees/interest), harassment, and potential lawsuits that can result in wage garnishment, bank account freezes, or liens on property, but sometimes very old debts might fall off the report if they're time-barred and never sued on. Ignoring a lawsuit summons is especially dangerous, leading to a default judgment against you, but you have rights, and a nonprofit credit counselor or lawyer can offer help. 

How to outsmart a debt collector?

So, if you want to bypass a debt collector, contact your original creditor's customer service department and request a payment plan. They may be willing to resume control of your account and put you on a flexible repayment plan.

What will a 700 credit score get you?

With a 700 credit score (considered "Good"), you're well-positioned to get approved for most major loans like mortgages, auto loans, and personal loans with more competitive interest rates and terms than someone with a lower score, plus you'll qualify for better rewards credit cards and may even see lower insurance premiums. You can access a wide range of financial products, but to get the best rates, scores above 740-760 are often needed. 

What is the golden rule of credit?

The golden rule of credit cards is to pay your statement balance in full every single month. This practice is crucial for maintaining a good credit score and avoiding costly interest charges.

How much must your credit score be in South Africa?

A credit score above 610 is considered the minimum for “good” credit in South Africa. This threshold represents the cut-off point where most lenders begin to view applicants as acceptable risks. However, to access the best interest rates and loan terms, you should aim for a score above 661.