The phone rings incessantly. On the other end is a stranger who doesn't know you, doesn't know that you've always been the responsible type, and that you would make the payment ? if only you could.

You want to hide, run away, but you know there's no escaping. In our current economic climate, over-indebtedness is distressing an ever-growing number of South Africans. And with retrenchments on the rise, and the cost of living continuously rising, the problem won't be disappearing any time soon.

According to a Fin24.com report, the number of civil summonses issued for debt has increased by more than 40 percent over the past year. Statistics from Credit Matters, one of SA's largest registered debt-counselling companies, show that the number of applications for debt review has increased six-fold over the past year, and continues to increase month on month. And according to Valerie Leeming of financial solutions company Interface, more than one in six employed South Africans are currently in a critical state of financial distress.

It's a vicious cycle

"Consumers tend to panic, hide away from creditors, and take on more debt to pay off what they are already struggling to repay, and by doing so they get themselves into more financial trouble," says Peter Setou of the National Credit Regulator (NCR).

It's a vicious cycle, and there are a great many factors that influence your ability to service debt, which includes job losses, high interest rates, and the increasing cost of basic living.

Our materialistic consumer culture doesn't help matters, and many women continue to take on credit in an effort to maintain a certain standard of living. But now is the perfect time to downgrade to a more realistic and affordable lifestyle, says Setou.

"Things you need to cut out or adjust include: alcohol, cigarettes, entertainment and eating out, expensive clothing, club memberships, satellite television, and holidays and weekends away."

It's not going to be easy, but this is a vital step in recovering financial health, as Michelle Young* (name changed) discovered first-hand. "As far as I knew, my husband and I were a financially secure couple," says the 35-year-old mother of two.

"We owned our own home, two cars, we went on regular holidays, and we did our grocery shopping at Woolies. On weekends, I'd shop up a storm, and loved nothing more than spoiling myself with a new pair of shoes or designer handbag. I wasn't earning enough to afford these, but my husband did, and he paid my credit card bills at the end of the month," says Michelle.

"Emotionally, we were less secure though, and I soon realised that no amount of retail therapy would make up for the fact that our marriage was coming apart at the seams. My husband showed little interest in me or our two kids, and after 10 years, we initiated divorce proceedings that were anything but friendly.

"Then I discovered that my husband had hidden the truth about our finances, and we were in a far worse position than I could have imagined. I was left to fend for myself and my kids, and I had a mountain of credit card debt to my name that my husband was no longer able to pay off. Before long, my phone started ringing; the calls started early in the morning, and kept coming until all hours of the night. My debt was catching up with me, and the collectors were relentless.

Feeling helpless

"I earned a respectable salary, but it wasn't nearly enough to maintain the lifestyle my kids and I had been accustomed to. I had to trade in all luxuries to afford the necessities, and even though we were living on the bare minimum, I still couldn't meet my monthly repayments.

"I felt utterly helpless and was consumed with guilt and shame at my own ignorance. It was affecting every aspect of my life. I couldn't sleep at night, couldn't focus at work, and worst of all, I was taking the stress out on my kids. When they came home with letters telling me their school fees needed to be paid urgently or further steps would be taken, I knew it was time to put my pride aside and ask for help.

I contacted the NCR to find out what my options were, and they recommended I consult a debt-counselling service.

"After that first meeting, I could finally breathe a sigh of relief. It wouldn't be easy, but there was a way out. I could hand the problem over to the counsellors, and they worked out a repayment plan I could afford. Finally, the phone calls stopped. I had to change my lifestyle drastically; no more designer clothes, no new shoes to brighten my mood, and no more ready made meals and expensive toiletries. But at least I could sleep at night and for the first time in months; I felt like my old, optimistic self again."

Michelle says her overall health took strain during this period, but she was fortunate to come out of it relatively unscathed. Many people aren't as lucky.

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