DebtSafe Blog

More Debt, More Drama

A bit of drama in your life cannot hurt. It only makes you stronger, does it not? Well, to be quite frank – if it includes large amounts of DEBT – it can surely be destructive, that’s for sure.

According to the latest statistics from Old Mutual’s Savings and Investment Monitor, 41% of South Africans’ salaries cannot upkeep expenditures. Are you caught up in the same situation and feeling baffled with what has happened to your paycheck this month? And, perhaps you lost track of that extra credit you took out to service all of your current agreements? You have basically been adding to your debt pile, and the fact is – more debt creates more financial problems and extra drama in your life.

It’s all and well to know that you have a debt problem at hand, BUT how do you get rid of all the drama? – Knowing that it will take more than just a few months for your financials to be in the clear again (realistically speaking).

Stop making your financial priority an understudy. You have to admit that you have a debt issue, and, you have to do something proactive about it.

Here are a few pointers to help you get rid of debt and keep on managing your day-to-day finances:

Be true to yourself and admit the total amount of debt that you have

It does not help to shy away from your financial problems – know whom and what you owe. Also, be sure to know exactly which accounts are reflecting in arrears. Take a look at your bank and credit provider statements and do the calculations.

Try new budgeting techniques

Why not try a different approach to improve your old-fashioned budgeting methods, and give these recommended templates or phone apps a try: Fiscal Fitness, nav-igate money, Personal Budget Planner, and Goodbudget Budget Planner (to name but a few). Do your research and find a budgeting system that works or mirrors the way you live your life.

Financial education is important

A little ‘financial assertiveness’ can go a long way when it comes to improving your knowledge of financial concepts and practises. Be patient – it does not happen overnight. Get your brain ‘financially programmed’ by starting with a bit of reading (and listening). There are various financial book review recommendations, blogs and videos to choose from. Don’t delay, cultivate your financial mindset by starting today.

Pay off debt ASAP

Don’t procrastinate when it comes to your debt repayments. Late payments also get reported via your credit profile and can ruin your credit score. There are two recommended ways to pay off your debt. The first one is the snowball method that can motivate you to pay off your smallest debt (like a clothing account) first and move on to the next debt. And, the second one is the avalanche method where you pay off your highest interest rate debt first (like a credit card).

Be careful when using your credit card(s)

Talking about high-interest rates, don’t be tempted by a credit card. Credit cards are known as DEBT BURDENS and should only be used when really necessary. Although it can be useful to build up a good credit score, you can easily get into long-term debt because of skipped payments, high-interest rates and recycling your debt.

Undramatically get rid of severe debt

If you already have a few of the above tips going and STILL see no results – consider consolidating your debt. Debt consolidation through the debt review process is regulated by the National Credit Regulator (NCR) and is there to see you through when it is basically your last resort getting out of extreme debt. Spare yourself the hassle and trust registered debt counsellors.

Be done with all the debt drama in your life and turn it around sooner rather than later. Although you may feel that debt is easy come, NOT easy go – you can get it sorted out. Tell it like it is and start implementing proactive ways to get rid of it bit by bit.