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21 November 2015
The festive season is upon us. At this time of the year we tend to allow our expenses to run away from us as we begin to fund festive gifts, feasts and holidays. Most of us are already burdened with debt and can’t really afford to allow our situation to become worse. Now is a good time to pause, take control and reduce that debt burden before it’s too late. Here are a few debt management tools to get you started…
Do you have a ‘pay day’ loan?
Short term loans are very expensive loans as they have the highest interest rates. If you are fortunate enough to receive a bonus in December, you should consider settling these types of loans. By doing this, you will free up cash flow and remove your dependency on short-term lending. In fact getting rid of short-term loans as quickly as you can is the best way to relieve financial pressure before the New Year starts. Set a financial goal for yourself to pay off and live without expensive short term ‘pay day’ type loans.
Stop living off credit pay all your bills first
Borrowing money to go on a holiday or to purchase gifts is not advisable. Remove the temptation of swiping your credit card by locking it away or cutting it up. Stay away from the shopping malls that will be tempting you with all sorts of festive season offers. If you are really serious about getting out of debt, you need to get serious about staying in control of your spending now more than ever. Pay all your accounts, put money aside and prepare your budget for your living expenses, and only then if there is some money left, go and spoil yourself a little.
Saving up your 13th cheque for New Year spending
Just as you think you have finished spending on festive season extras, along comes the New Year with a whole host of additional and often unexpected costs. Many of us forget to plan for January and get caught with no money left and having to turn to loans to get through the first month of the year. In order to avoid this, it is vital that you plan for January expenses now, before the festive season. Make sure you put enough money away for January’s living expenses and extra things like back to school stationery and uniforms. If you receive a bonus in December or a 13th cheque, save some of it for New Year expenses. If you can avoid having to borrow money at the start of the New Year, you are off to a good start.
Debt Consolidation with Debt Counselling
If you find yourself over-committed and struggling to pay for living expenses and debt each month, then you should seek assistance immediately before your credit providers take action against you and before your situation becomes so stressful that it starts to impact your health, your relationships and your productivity at work. Consolidating your debt with debt counselling is a great way to reduce your monthly debt repayments and free up cash for your day to day living expenses.