Rek Your Cheque: Wise up if you can’t leave SA

What about those who can’t afford to leave SA?

It is estimated that 25 000 skilled workers leave South Africa every year.

Nicholas Avramis of Beaver Immigration in Cape Town says that South Africans can get through the door of a country like Canada for example, with a good track record, good English skills, a four-year degree, and R3 million to invest.

While that is great news for those who meet the criteria, what are the options for those who don’t, especially people reeling from the ravages of the Covid-19 pandemic and subsequent lockdown, bearing in mind that many South Africans are still struggling to get their R350 social relief from distress (SRD) grant, much less have R3m or even R30 000 lying around.

Sebastien Alexanderson, the CEO of the number one debt counselling company in the country, National Debt Advisors (NDA), says because lockdown has negatively affected so many industries and people’s income were either completely lost or drastically decreased, realistically, the options are literally to sink or swim.

“The reality is that no matter how negative many South Africans might feel about their country of birth, most do not have the financial resources to just pack up and leave,” he says.

“South Africans therefore have no choice, but to learn how to better manage their finances and their debt, and to implement it in their lifestyles and budgets ASAP.”

Those not able to leave these shores are going to have to equip themselves with sound financial practices to keep their heads above water.

Alexanderson says that National Debt Advisors has seen an increase in search for financial solutions and options across all their information and social media platforms and suggests the following:

• Get out of denial and acknowledge that you are struggling and have a problem with your debt.

• Draw up a detailed budget, but write it down. Don’t try to keep it all in your head.

• If your expenses are exceeding your income or most of your income is going towards paying your debt, then you have a problem. Deal with it.

• Research your options.

• Put your pride in your pocket and ask for advice and assistance.

• Speak to your financial advisor about your pensions, your policies, your investments.

• Don’t avoid calls and correspondence from your creditors.

• Contact a reputable, registered debt counselling firm to help you find solutions before legal action and repossession of assets take place.

Wealth Migration Review, a company looking at recent wealth migration trends, says: “If a country is losing a large number of high net worth individuals (HNWI) to migration, it is probably due to serious problems in that country.

“It can also be a sign of bad things to come, as HNWIs are often the first people to leave. “They have the means to leave unlike middle-class citizens.

“If one looks at any major country collapse in history, it is normally preceded by a migration of wealthy people away from that country.”

On the flip side of the coin, countries that attract HNWIs tend to be very healthy and normally have low crime rates, good schools and good business opportunities.

Common reasons why people who can afford to leave SA, are doing so:

• Safety – woman and child safety especially.

• Rising levels of crime.

• Lifestyle: climate, pollution, space, nature and scenery.

• Financial concerns.

• Schooling and education opportunities for their children.

• Work and business opportunities.

• Taxes.

• Healthcare system.

• Standard of living.

• Problematic government.

Sound familiar?

Global citizenship company Henley & Partners has reported a sharp increase in South African enquiries in the third quarter compared to Q1 2020, with a nearly 50% increase in enquiries overall as the pandemic swept around the globe.

However, if you are like the millions of other South Africans who are staying because you cannot afford to leave, then take control of your finances and your debt.

Lockdown was tough, but we are in for an even rougher ride as the year heads towards the end.

Being financially educated, informed and prepared can only stand you in good stead in these tough times.

Know your rights. Know your options.

SA is a beautiful country and has much to offer.

There is light at the end of the tunnel.

*Moeshfieka Botha is Head of Research and Consumer Education at National Debt Advisors.

For more information on debt and personal finance go to www.nationaldebtadvisors.co.za