Debt Repayment in South Africa: How Much Can You Save?

How much can you save during your hard times? Seems a tricky question, doesn’t it? Financial predicaments may arise out of nowhere and it is always wise to set aside a percentage of your monthly earnings. If you are deep in debt and you are struggling your way out, you may consider opting for a thorough debt review through a third-party debt appraisal and repayment assistance firm, or an independent practitioner. Much like offensive action is considered by great soccer coaches as the best defence, the first step towards living a debt-free life could be saving your hard-earned Rands. How much can you save during a debt review process? Here’s the answer.

Debt Review is a Must

Why is debt review considered one of the most feasible ways to put an end to a debt problem? This is because you can trim down payments to the creditors bit by bit, month by month. Even if you are currently under a debt review, it’s highly advisable that you set aside a portion of your monthly income. Guess what happens when an unexpected expense arises? You should have a contingency plan in place to brave odds in life.

How Much can you Save?

It all boils down to pure arithmetic. At the time of entering a debt review agreement, you should calculate how much you can actually pay in the form of loan repayments every month. Deduct your monthly expenses from the monthly earnings and decide how much you would be able to pay every coming month. Just one thing, you should NOT mention saving in your monthly expenses budget while in talks with your creditors. Once the expenditure is agreed, you can start saving by curtailing your monthly expenses.

How can you Save while Paying your Debt in Morsels?

It goes without saying that monthly saving depends a lot on planning. How much can you save after paying your creditors every month? Well, you need to first puzzle out how much you can actually ‘afford’ to save every month. Start setting aside the money at the beginning of the month so as to avoid splurging on things you don’t need. What happens when you wait until the 30th or 31st day of the month? You are most likely to discover that the money you had actually planned to save has already been spent.

Pay before you Save

While saving is an advisable practice, it’s not as good as getting out of the cycle of paying high interest your debts. The sooner you liberate yourself from the clasps of debt, the easier it would be for you to do some long-term financial planning. How much can you save after repaying? Contact One Debt today to get out of debt gradually.