If one makes a loan and the interest rate is said to be 32% per annum – (compounded monthly). What exactly does that mean? How is this calculated monthly? The key is to look at the APR rate, as that gives the true interest rate. There are many methods of calculating interest, but most will […]
27 November 2012
Over-spending? DebtBusters provides you with the warning signs to look out for…
We all go through periods of over-spending. No matter how well we budget, some expenditure just cannot be planned for. However over the long term, things should go back to normal. If this is not the case, then you should be worrying.
So here are signs that should alert those alarms bells and tell you it’s time to cut back your spending, and find other – and less expensive – ways of living.
1. The very beginning:
Detecting your over expenditure from the start can be tricky; however this is the most important period to keep an eye on. Keep a look out for signs such as going to the ATM more frequently than usual and your credit card balance not being cleared each month. If you find yourself in this leg of the game then corrective action should not be difficult. Just say ‘no’ a little more often. The accomplishment here is to re prioritise your budget and know what funds are coming in as well as going out. More importantly, if you do not have a budget, you need to draw one up and stick to it.
2. In denial:
Your credit card is being used more frequently than ever and the balance just gets bigger. At this stage you are aware that your finances are not quite in control but you decide to avoid this fact, after all – what choice do you have? Wrong! Make no mistake as well as getting your expenditure back under control, there’s a escalating debt management issue you need to address – paying less interest on your debt, paying it off faster and stopping it spiralling out of control.
3. Stop now:
Serious financial problems have now arisen and it’s time to address the problem. Simply put, you have a significant amount of debt, and some painful readjustment of priorities is necessary. Your changing circumstances may allow you to cut down in expenses such as insurance policies, these should be reassessed annually. It is important to keep in mind that you are not alone. The warning signs of this stage are you not opening your bank statements; you are making minimal – if any – payment on your credit and store cards; you are hiding your situation from friends and family and you are getting calls and letters from your creditors.
4. Get help:
The fact of the matter is that money does not spend itself. Every Rand spent was your decision made. If you have found yourself in any of the above predicaments then you need help. This help can vary from free advice to assist you in drawing up a budget to formal Debt Review. At DebtBusters there will be a solution so suit your specific situation and our friendly professional Debt Counsellors are here to help you every step of the way.
Contact DebtBusters on 0869 99 06 06 or visit our website www.debtbusters.co.za.