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.









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