In this day and age, people are living to die and working just to survive.
More than 11 million South Africans are over indebted, that’s over 22% of the South African population. Now, the reason for such a high number is attributed to all the unnecessary debts we incur on a monthly basis.
In this article I will share with you some of the tried and tested methods and mechanisms that can assist you in your “debt-free” journey.
- Stay in your lane!
Be realistic, stay within your limits. If your expenses are exceeding your income/ s then that is a clear indicator that you are over indebted. But worry not, there is help for you.
- Contact a debt counselor: Now the role of a debt counselor is to renegotiate your debt payments to your creditors. They will also shield you from any legal action that may be taken against you.
- Needs Vs Wants
Now the reason why many we fall into debt-traps is because we sometimes cannot differentiate between our needs and our wants. You may think you NEED a new car, You may think you NEED a new house but those are all just wants disguised as needs. Be aware!
- Save For A Rainy Day
The trick to saving is distinguishing between what I call a good expense and a bad expense. Medical aid, Life Cover and monthly Investments are perfect examples of good expenses since they will benefit you and your family in the future. That Edgars club card, Jet, Legit, TFG cards are perfect examples of bad expenses, I mean, are you seriously buying clothes every single month without fail? So reassess all your credit keep the ones that bring value and rid yourself of those that simply entice you to spend more.