The tough economic climate is surely testing quite a few nerves all round. You are certainly not the only one feeling barraged with financial uncertainties, bills and debt repayments…
Carla Oberholzer, debt adviser at DebtSafe, says economic times are indeed raising questions on how to stay debt-free and make more than ends meet. “BUT, if you turn a blind eye and don’t implement small things or tweaks to keep your personal mini-economy healthy, how will you ever turn your debt situation around for good?” highlights Carla.
The following five crucial tips or as Carla calls it – Debt Turnaround 101 – can assist you in getting rid of your debt, bit by bit:
1. Develop a repayment plan
Try to tackle your multiple debts by actively being involved in your own repayment plan. Keep it practical and decide if you want to get your debts with the highest interest rates out of the way first OR your smallest ones rather. Also, remember: It is always best to go beyond the minimum payments on your debts (whenever you can).
2. Track your expenditure
Always keep track of your expenditures and cut your biggest expenses (like costly luxuries, gadgets or clothing) first, then trim those smaller spending habits of yours (like your weekly takeout meal).
Talking about a few cuts you should make – what about getting rid of your excess clutter and saving some money? Be done with your stuff addiction and sell appliances or whatever you deem unused for over a year. You can start a well-needed savings fund – it is National Savings Month after all – OR contribute to a proper retirement fund. Time flies, so be wise with your savings before it is too late.
4. Retail therapy is a big NO-NO while trying to get rid of your debt
Yes, the impulsiveness feels comforting – especially when you’ve had a ‘meh’ day at work, but, you should try your best to avoid the shops at all times. If you have saved for clothes or a new pair of shoes, only then should you shop around and find what you need, and for the best price of course.
5. Find your own ‘Finance Guru’ to help you get out of debt
This is someone or a system that can work for you and take care of your needs. When last did you consult your financial planner? Or when are you going to start exercising a recommended financial author’s tips on finance management? Find the someone or something that will be a good fit for you and your own financial situation.
If, however, your finances and debt are already spinning out of control, why not turn your debt around by getting in touch with registered debt experts? Don’t delay – get going.