Managing your money is always important, but it becomes essential during a crisis like the
coronavirus pandemic. The entire world is facing a challenging time, and you may find
yourself in a similar situation. It is a good a time as any to re-evaluate your finances, your
debt and the way forward.
Steps to consider:
1. Create a budget, and stick to it – while this is an oft-repeated phrase, it is
nevertheless true. Now, more than ever, it is time to re-evaluate your needs and do
away with luxury items. Your necessities – and your debt – need to take priority.
Consider what accounts you can afford to pay, and prioritise your debt according to
the level of interest each one has, or their importance.
2. Be strict with your purchases – carefully consider each transaction and only buy
what is absolutely necessary. You may need to make lifestyle changes and this
includes thinking very carefully before every purchase.
3. Stay in touch with your creditors – if you are unable to meet your monthly payment,
don’t ignore it. Contact your creditors and speak to them about the options that
could be available to you. You could ask if you can reduce your interest rates on
credit card balances, or defer monthly payments. Remember to find out how much
these arrangements cost.
4. Take advantage of payment holidays – most banks are offering payment holidays to
everyone whose income is affected by pandemic crisis.
5. Apply for debt counselling – if your negotiations with your creditors are unsuccessful,
you could apply for debt counselling. This is a debt relief programme and is governed
under the regulation of the National Credit Regulator (NCR). It is designed so that
you will be able to pay your debt, as well as be able to pay for your family’s
necessary living expenses.
The way forward:
While we are living in uncertain times, we can make a difference in our own lives. It is
imperative to maximise the money that we do have, and create a plan that will prioritise our
spending in the future.
Contact One Debt today for more information about managing your finances during tough