If you find yourself in the seemingly endless cycle of paying off debt that doesn’t seem to
lessen, you may need assistance in managing your debt. A large portion of our fellow
countrymen find themselves struggling to pay their monthly obligations. The good news is
that you can take control of your debt. Have a look at the following tips to help you on the
right road for managing your debt:
Tips to help:
1. Know how much money you owe and to whom you owe it: Keep an up-to-date list of
all the debt you have. List the total amounts owing, as well as what the monthly
repayments are and their deadlines.
2. Create a monthly budget – and stick to it: You’ve likely heard this a number of times,
but it remains one of the most effective ways to help manage your money. If you
know how much money you have coming into your account and what goes out,
you’ll have an effective way of knowing what you actually have at the end of the
month and the amount of debt you can afford to pay.
3. Prioritise your debt: Decide on which debt to tackle first. It makes sense to choose
those that have the highest interest rate first.
4. Ideally, pay what you can: It’s essential to pay the minimum monthly payment. While
it would be great to pay extra, it isn’t always possible. At the same time, don’t skip
payments. This’ll just incur more debt and your account may go into default.
5. Consider debt consolidation: This means taking out a loan to pay off smaller debts.
It’ll mean 1 amount to pay off each month instead of a few. It’s an attractive option
if you are struggling to manage your debt.
6. Debt counselling/debt review is also an option: It is a legal process that allows over-
indebted consumers to pay off their debt through the assistance and guidance of a
debt counsellor. The debt counsellor will obtain a court order on your behalf and will
draw up a manageable repayment plan. He’ll liaise with creditors to renegotiate
payment at lower interest rates.
Managing your debt can be done. You’ll need honesty with yourself, a clear head and
determination to follow through with your plan.
If you need assistance with managing your debt, speak to a consultant at One Debt today.