DO you earn too little to live on? Do you borrow cash just to make ends meet?
Many of us have been there, but surviving on debt is not the way to live. You need to fix your money issues because this is not sustainable in the long term.
Eunice Sibiya, head of consumer education at FNB, said: “Carefully re-evaluate your budget and prioritise paying off debt as quickly as possible.”
Change the way you spend
What behaviour put you into debt? Evaluate your spending pattern as well as your lifestyle.
List your debt
Write down all your creditors and the amounts owed to them. Then pay off the debt with the highest interest rate or amount owed.
Consider paying a lump sum to that debt but still pay the minimum on the others. Once you pay off one account, channel the money into servicing the other debt so you can pay it all off as quickly as possible.
Set periodic goals
Now that you have listed your debt and have a plan to pay it off, set a time frame and work towards achieving your goal within that timetable.
“You need commitment and discipline from start to finish. The desired goal will be its own reward at the end of the hurdle.”
Track your progress
Check to see how it is going every three months. If you review your payment plan regularly you will see if it is working or not.
“If the progress is positive, you will be encouraged and driven to look at the long-term benefit of a debt-free life,” said Eunice.
