About Debt Learn About Debt 1. Don’t ignore your Debt Resolve to deal with your indebtedness using the means at your disposal Don’t be threatened or bullied into making promises you can’t fulfill, you have rights!! Cut down on unnecessary expenses and luxuries 2. Prioritise and pay your debts Formulate a budget representing all your income and monthly commitments First pay the bills on essentials like housing electricity and insurance First pay important debt like your house and vehicle 3. Avoid borrowing to pay off debt At all costs avoid using credit cards to pay for existing debt Credit only creates more debt, so don’t take on any extra credit cards or store cards If you get retrenched use the retrenchment package to pay off debt and make sure that there is no retrenchment insurance 4. Cut down on expenses Eliminate non-essential items, short term discipline will ensure long-term financial stability for you and your family It’s a mistake to cancel important car and household insurance policies, rather target luxuries – this will save you a lot of money Where possible avoid paying others to do things that you can do yourself 5. Start saving Plan to save money every month- this means paying yourself first. With the money you put aside, create an emergency fund for unforeseen situations which may arise Be consistent and accurate with your budget and keep what is left over.