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I get this question a lot of times in my messages. So here it is on this thread below to being debt-free.
I get this question a lot of times on my messages. So here it is on this thread #LetsTalkAboutDebt
I get this question a lot of times on my messages. So here it is on this thread #LetsTalkAboutDebt
1. KNOW YOUR DEBTS
You will be surprised how many people do not know who they owe money to. Write them all down from Credit provider, monthly Installments, interest rate and your outstanding balances on all of your debts.
You will be surprised how many people do not know who they owe money to. Write them all down from Credit provider, monthly Installments, interest rate and your outstanding balances on all of your debts.
2. STOP TAKING & USING MORE DEBTS
It doesn't make any sense to be trying to get out of debt when you are still taking more debts. Also, stop using that credit card and that overdraft and start work on reducing that balance.
It doesn't make any sense to be trying to get out of debt when you are still taking more debts. Also, stop using that credit card and that overdraft and start work on reducing that balance.
3. A STRICT BUDGET
Start by getting your 90 days bank statement and account for each item line there. Yes, face your demons. Be honest to yourself, include all your alcohol, cigarettes, Data.
Remove everything you CAN live without. Cut down on your spending.
Start by getting your 90 days bank statement and account for each item line there. Yes, face your demons. Be honest to yourself, include all your alcohol, cigarettes, Data.
Remove everything you CAN live without. Cut down on your spending.
4. TRY A SNOWBALL REDUCTION STRATEGY
Pay off your debt that has the lowest balance first. Once it's paid off, you attack the next one including the amount you were paying for the previous debt until all of your debts are paid up. Maintain paying the minimum to your other debts
Pay off your debt that has the lowest balance first. Once it's paid off, you attack the next one including the amount you were paying for the previous debt until all of your debts are paid up. Maintain paying the minimum to your other debts
5. THE AVALANCHE REDUCTION STRATEGY
Pay off your most expensive debt first and go down. An expensive debt is one that has a high-interest rate.
For example, a Home loan over 20 years @ 9% is cheaper than a credit card over 3 years @ 27% interest rate.
Pay off your most expensive debt first and go down. An expensive debt is one that has a high-interest rate.
For example, a Home loan over 20 years @ 9% is cheaper than a credit card over 3 years @ 27% interest rate.
6. FIND AN ADDITIONAL INCOME
Doesn't have to be fancy or bring you ama-tawu. Even a R500 will go a very long way and help you finish paying your debts sooner.
Make sure to not create an expense for that income other than your debts.
Doesn't have to be fancy or bring you ama-tawu. Even a R500 will go a very long way and help you finish paying your debts sooner.
Make sure to not create an expense for that income other than your debts.
7. DOWNGRADE IF YOU HAVE TO
There's absolutely nothing wrong with finding a cheaper apartment or even going home if you are struggling. "Abantu bazothini"? They will still talk, either way, abantu banjalo but have your owns interests and forget about people. It's about you.
There's absolutely nothing wrong with finding a cheaper apartment or even going home if you are struggling. "Abantu bazothini"? They will still talk, either way, abantu banjalo but have your owns interests and forget about people. It's about you.
8. DEDICATE YOUR BONUS TO YOUR DEBTS
There's Covid vele, so it's okay to live on your normal income and take all of that bonus to pay off your debts. It's just 1 December, you won't die.
The next December might find you debt-free to enjoy your money, take the sacrifice
There's Covid vele, so it's okay to live on your normal income and take all of that bonus to pay off your debts. It's just 1 December, you won't die.
The next December might find you debt-free to enjoy your money, take the sacrifice
Lastly, paying off debt is the best investment.
