Managing your debt
Does your debt situation need a reality check? Getting out of debt isn’t easy. It takes a lot of effort to keep up with monthly bills, save for a rainy day, and pay the minimum monthly payments on your credit card or personal loans. It can feel overwhelming.
But changing your behaviour and developing the discipline to get out of debt will make sure that you become more financially secure over time. The first thing you need to do is just start.
Start by watching Geldhelde every Thursday, via, DStv channel 147 at 18:00, where we give you practical tips that you can apply to your everyday life to help you get out of debt and start saving. It’s possible, and we’ll tell you how.
Let’s get real about debt. Let’s get real about your financial success. Shift the way you see financial success. Partner with a financial adviser to get #AdviceForSuccess.
Debt in South Africa
South Africans have 31% less disposable income than 6 years ago due to the average net income remaining flat while inflation soars*.
*Source: Data from debt management firm DebtBusters Debt Index, SA’s leading and largest debt management company.
How to avoid debt
To help you avoid spending more than you should:
- First establish the monthly instalment you can afford, even when the interest rate increases.
- Do your homework and shop around for the lowest interest rate.
- Debt repayment instalments shouldn’t exceed 40% of your income before tax (gross income).
Don’t be afraid of talking about debt
The golden rules are don’t spend money you don’t have and don’t use one form of debt to pay for another.
You can choose the type of debt you want to have – one that hinders your financial dreams, or one that advances your journey to financial success.
In this week’s episode, you can learn how to manage your money and have a healthy relationship with debt. First, you should draw up a budget plan to understand how much money is coming in and how much is going out. Second, start with paying off your smallest debt that has the highest interest rate.
And if you’re in a really difficult position, seek the help of a debt counsellor who will be able to help you manage your debt so that you can afford it. Understanding your debt gives you peace of mind, reduces your stress, and allows you to create a financial plan.
Create a #MomentumShift by partnering with a Momentum financial adviser to get #AdviceForSuccess. Watch tonight’s episode on via DStv channel 147 at 18:00.
EPISODE 4 | 2 June 2022
Life insurance helps safeguard you and your family from financial uncertainty if you were to become ill, disabled, or pass away. In the next week’s episode, we talk about finding life insurance to suit your needs.
Catch Money Heroes re-runs on via DStv,
Mondays at 06:00, Wednesdays at 13:30 and 19:30, Thursdays at 11:30, and Sundays at 18:00.