Create Wealth By Staying Out Of Debt
This BizCommunity article addresses the issue of South Africans being the biggest borrowers in 2014 worldwide!
In a survey done by DebtSafe earlier this year, the statistics show that 51% of the participating respondents were not able to meet their minimum debt repayment requirements in January. 13% of respondents indicated that they couldn’t make any payment. The consequences are enormous. They will have to make a double payment in the next month and catch up the arrears.
It is usually at this point where people realise they have a problem and any chances of becoming financially independent and accumulating wealth gets suppressed by the spiral of bad debt.
If you are not saving, you are making debt; therefore, try to stay out of debt in order to optimize your chances of becoming wealthy. Not being overburdened with debt means that you will have real cash to invest and your net worth will not be in the negative as most of your fellow citizens’ are. People who make use of debt to maintain a certain lifestyle will never become truly wealthy.
How do people get to a stage where they have enough cash to actually start investing and accumulate wealth? If you are over-indebted, which 50% of South African credit active consumers are, how do you get rid of that debt burden to enable you to start investing?