A South African consumer approached DebtBusters with the following budget related question:
I am earning a good income, but I am struggling to make ends meet and always spend out of my budget. Can you please advise on how I can sort out my debts and still stick within my budget? I do not want to impair my credit history, as I would like to purchase a house one day in the near future.
DebtBusters advises the following with regards to sticking to your monthly budget and spending within your means:
Managing your debts and money poorly can have detrimental effect on your finances as a whole. It is vital that you implement good money management habits as soon as possible, in order to prevent further stress and accruing more debt. The following tips from DebtBusters can assist you with keeping your debt under control:
1) It is vital that you draw up a new monthly budget.
In order to monitor exactly where your money is going, correctly list your income and expenses. It is vital that you stick to your budget and constantly amend it to make sure that you live within your means. Try and optimise your budget by assessing your expenses and gauging where you can cut down on costs. Only purchase items that are necessary, until you have settled your debt.
2) Formulate a good payment plan, enabling you to pay off your debt as fast as possible.
Prioritise your debt. This can be done by determining which debts are more important than others. Important debts, such as home loans and vehicle financing, should be paid first. Smaller debts should also be paid off before bigger ones, as if they are left, over time the interest rates will increase causing the debts to turn into bigger ones.
3) Consult your employers and check whether you are receiving all benefits you are entitled to. This can help increase your income.
If possible, get a second job to enhance your income or find another means of income such as renting out a room in your house or asking your children to contribute financially or pay for their necessities.
4) Contact DebtBusters on 0869990606 and sign up for debt counselling before your financial situation spirals out of control to a point where you are no longer able to pay off your debt.
Debt counselling a structured and closely managed debt solution that will enable you to pay off your debt, as well as give you a second chance to build a brighter future and contribute to the wealth generation in South Africa.
When facing financial difficulties, the first step is to acknowledge how much debt you have accrued and that you are in need of assistance. As you can see, you have already taken the first step to amending your financial circumstances for the better.
It is vital that you are 100% honest about how much debt you are in and confide in someone who you can trust. Remember, you must not take out any further credit. This will be detrimental to your finance health.
DebtBusters, South Africa’s largest and leading debt management company, has expert financial consultants that will conduct an assessment on your financial situation, draw up an affordable monthly budget and provide you with professional advice adequate for sorting out your debt.
Contact DebtBusters today on 086 999 0606, to find out more information on how to stick within your monthly budget, debt counselling and debt consolidation.