You Can Reduce Your Debt

For the second month running, petrol prices are set to increase. This along with increased
elecctricity and food prices.

It is a fact that costs are going up and the cost of living is increasing. In order to free up a
little disposable income, it makes sense to get rid of some of your debt obligations.

While it may be a challenge, there are ways in which it can be done. Let’s have a look:

  • Add up all your debt and decide to pay off the most expensive debt first. This doesn’t
    mean that it is the debt with the largest amount owing, but the one with the highest
    interest rate. This includes credit cards, store cards, overdraft facilities and personal
  • By all means avoid adding more debt by paying for your purchases with a debit card or
    cash, rather than a credit card.
  • If you receive a cash windfall, use some of this money to reduce some of your larger debt,
    such as long term loans.
  • If you receive a bonus, use a portion of it to invest. You could choose a tax-free savings
    plan, a tax deductible retirement annuity or an endowment fund.
  • Add up all the commitments you have for the remainder of the year. Ensure that you plan
    to set aside enough money to meet these obligations so you know that you can pay them.
  • Buy in bulk. Quite often, stores have items that are marked down by a substantial
    amount. These could be cleaning materials, bathroom products or even non-perishable
    foods. Buying these items in bulk, and at a cheaper price means that you will save in the
    long run. (and you are not likely to run out of any of these essentials either!)
  • If you have a prepaid electricity meter, purchase your month’s supply of electricity on the
    1 st of the month. You will pay less per unit than on any other day of the month.

We are all aware of the ever increasing costs of living. By making a few changes in the way
you budget and plan, you can create a little more disposable income.

For more details on how you can create more disposal income, speak to One Debt today.