So often we South Africans commit to the discipline of budgeting for the year to get out of debt and incur no new obligations. If this is you, you may determine to tighten your belt and eat cheap and at home. You resolve to never drive your car when you can walk and incorporate a week’s worth of errands into one trip. You ban yourself from internet shopping and swear to buy nothing new for one whole year. When money is tight it’s difficult to stay faithful to a budget because most of us don’t factor in the unexpected; if we did the budget wouldn’t work because there’s just simply not enough money.
Realistic budgeting for the year
Your financial situation is not hopeless and realistic budgeting for the year is possible. For example; you’re in the third year of your car payment, the second year of a furniture payment, there’s a balance left on a home loan you used to replace the roof and you are making minimum payments every month on three credit cards. You’ve been keeping this juggling act going but you are one emergency away from disaster. The new car, roof, and credit cards used for dental work, new tyres, travel for family events and last week’s groceries were not really emergencies. They became emergencies when you chose to not include them in anticipated expenses. You bought the furniture because it relieved your depression over financial issues for about a month and the store agreed to finance it for you.
Budgeting for the Year Through Debt Consolidation
There are many South Africans in the same boat with you, but that knowledge will not relieve your misery. One Debt is a debt consolidation company that can help you realise your dream of debt management now and freedom from debt in the future. You are paying an exorbitant amount in high interest charges to many different creditors. That may be all you’re paying so your actual debt balance never goes down. Imagine, if all your outstanding debt were swept under one umbrella with a reasonable interest rate and one manageable payment a month. You would still have enough cash flow to manage your expenses. Budgeting for the year using debt consolidation could be your solution. For more information on budgeting for the year phone One Debt on 087 232 3400.