Thank you for the question.
The only route out of debt is to stop living beyond your financial means. Not living according to a budget is arguably the most prevalent financial blunder individuals make when it comes to managing their debt.
Getting out of debt and staying out of debt depends on developing and sticking to a strict and realistic budget. Ideally the budget that you create should account for your debt payments. Furthermore, it should also allow you to pay more than the minimum toward your debt. Especially if you are struggling with debt and want to get rid of your debt, it is important that your budget reflects this.
Be smart about applying for new credit, or in your case a home loan. Make sure you’re aware how your credit rating works and how to apply for credit without doing damage to your credit profile. If you cannot make the monthly payments your loan application will not be successful.
If you find that you can’t afford your minimum monthly repayments, it can be hard to get out of debt. Debt review can help you get a handle on your finances so that you meet your financial commitments for all the debt you owe. Depending on your situation, a debt counsellor can recommend a debt management plan. A debt counsellor can also help make alternative agreements with your bank. Such as making smaller monthly minimum repayments.
If you would like more information you can fill out our quick and easy online contact form found here: https://www.debtsafe.co.za/contact-form/ and one of our consultants will contact you soonest.
Have a great day.