The formal debt solution, debt counselling, was introduced by the National Credit Act in 2007 to assist thousands of South African consumers struggling with debt. Through this primary debt solution, debt counselling, DebtBusters aims to give these South African consumers a second chance to build a brighter financial future and obtain the financial well-being they […]
27 November 2012
Below are some top tips for getting yourself out of debt.
• Pay back more than you have to. Top up minimum payments on credit cards to bring down the balance.
• If you’re having trouble managing your debt, stop using credit cards until you’ve reached your goal.
• If you want something, don’t buy it unless you have the money. Money saved can go toward debt.
• Cut back on small, recurring expenses.
• Pay off the most expensive debts first. Find the one with the highest interest and work on knocking it down.
• If carrying a balance on debt, make payments as early as possible to reduce interest charges, rather than waiting for the due date. Check your contract for early-payment charges.
• Consider a quality used car rather than new. If you choose new, look for good fuel economy.
• Consider paring back by one vehicle, even temporarily.
• Stockpile groceries when they go on sale and cut out one shopping trip every month or two.
• Get a second job to tackle debt. Put all new money into paying off your debts.
• Track spending for a month and identify ways to cut back. Most people are surprised by what they learn about their spending.
• Put needs before wants.
• Get a consolidation loan. Wrap consumer debts into one loan with one payment at a lower interest rate. This only helps if you develop a budget allowing you to save some money every month. Without savings, you may need to reapply for credit cards and then pile up more debt.
• If you have enough equity in your home, you could consolidate debts into a bond. But if you don’t have a lot of equity, additional bond-insurance costs may be expensive. Talk to someone other than your lender. Avoid using your home as an easy source of money to avoid ending up at retirement age with a lot of debt, no assets and no savings.
• Talk to a credit counsellor for advice.
• Cut back on luxury expenses, such as dstv, garden services and domestic
• Cut back on cell phone expenses where possible
• Try joining a lift club to cut back on excessive traveling expenses.
Should you require the assistance of a debt counsellor please contact DebtBusters on 0869 99 06 06 or have a look at our website www.debtbusters.co.za.