Please tell us what exactly is a debt counselor? It’s not like people talk about seeing a debt counselor every day. A debt counselor will be registered with the National Credit Regulator (NCR) and will have done the necessary qualifications and exams. Before choosing a debt counselor you need to ensure they are registered and […]
19 September 2016
The management of debt has become increasingly difficult in the modern era. Access to debt is so readily available that we can easily forget the difference between money that is really ours and money that we borrow but have to pay back again. As these two become confused, we can find ourselves in a downward spiral into a seemingly bottomless pit. That’s why it is vitally important for us to be responsible with how we spend our money. Here are a few easy tips to make sure that we keep ourselves clear of the mighty claws of bad debt.
- Work with a budget. Without a budget as a base, we make our own lives difficult. What you measure, you can improve.
- Know the difference between needs and wants. Make sure you cover all your needs first before you spend any money on your wants. Getting this wrong often results in taking on unnecessary debt.
- Use credit wisely. This can be determined by referring back to your budget. Then determine what you can comfortably afford to purchase on credit. The ideal is to try and keep your credit payment under 30% of your monthly pay check. Pay more than the minimum on your monthly charge accounts. Avoid borrowing from one creditor to pay off another.
- Find out and monitor your credit score. Your credit report is information held by credit bureaus that documents all your credit agreements and should be regularly updated by your creditors. There are great tools on the market like http://www.kudough.co.za/ which can help you monitor your credit agreements and also gives you advice on how to improve your credit score.
Managing debt is an essential skill in today’s financial world. We all have a responsibility to ensure that we do not become part of the problem but rather part of the solution. In an age where economic conditions are deteriorating, responsible debt management is essential for a brighter financial future.