Many people in South Africa are still unaware of what the law says regarding ‘old’ or ‘prescribed’ debt and end up paying off the debt, even though they are no longer liable for it. At DebtBusters, we want to make sure that you stay well informed and that you know your rights when it comes to managing your ‘old’ or ‘prescribed’ debt. Prescribed debt can be your debt solution!
28 November 2012
Comparing your spending to your income.
Here comes the real measure of the state of your finances: Figuring out how your total spending compares to your total household income. You may be in for a shock. Are you ready?
Gathering the necessary materials:
To complete this exercise, you need a pad of paper, a pen or pencil, and a calculator. You also need the following financial information:
• Check registers
• Bank statements
• Receipts for major purchases not made with a credit card
• Credit card expense records for the past 12 months
You also need records of your income for the past 12 months, such as pay slips and deposit slips or direct deposit information. If you’re self employed, you need your business records.
Your spouse or partner should gather up the same information because the goal of this exercise is to give you as complete a picture as possible of how your household spending compares to your household income.