Steps to getting out of debt

Finding yourself in debt not only feels terrible but can be immensely stressful. Debt will prevent you from reaching your financial goals, like saving for retirement or purchasing a home. It’s a creator of stress and grief, ensuring constant worry about your money and the limitations debt has put on your everyday life. Fortunately, debt is not a life long sentence. You can – and definitely should – make paying off your debt your most important task immediately.

Lots of people have a problem with paying off debt because they are unsure of where to start. Which financial obligations to eliminate first? Just how much you should pay every month to start getting rid of debt? Is the minimum payment enough? How long will this process take? Will it be hard? What comforts would you need to give up?

Debt review, also known as debt counselling, is a solution targeted at South African consumers struggling to manage their finances because of being over-indebted. A professional debt counselor will assist you with assessing your outstanding debt and implementing a restructured debt repayment plan. This will be achieved by renegotiating current interest rates with credit providers as well as extending the repayment plan period.

Other steps you can take towards getting out of debt:

Make a conscious decision to stop borrowing money

If you want to get rid of debt fast, you need to stop using debt to finance your way of life. Remove all temptation of making use of your credit cards by locking them in a safe or giving them to someone you trust to hold onto until you’re no longer in debt.

Create a streamline but realistic budget and stick to it.

Creating a budget that tracks your earnings, as well as your expenses, are vital to eliminating debt in a short time. It will help you measure exactly where you stand with your finances and enable you to move ahead toward your ultimate goal.

Utilise all extra money towards your financial obligations

By selling items you no longer use or temporarily getting a part-time job, you can generate extra cash and repay your debt even faster.

It can be greatly stressful to live from paycheck to paycheck and regardless of what kind of debt you’re in it’s vital that you know there is a way out. It might not happen overnight. However, a debt-free future might be yours if you make the decision today, get a plan of action and stick to it.

Call us for a free debt counselling assessment.

We can determine with the information provided if you are over indebted by creating a budget for your living expenses and debt installments. We will then calculate a new repayment amount which would be the amount payable towards all your debt. Now you will be able to budget again and have enough to pay towards your living expenses.

Once you have settled all debt, we issue you with a Clearance Certificate which clears your name on any credit platforms and enables you to apply for any credit should you want to.