The truth of the matter is that getting out of debt is not easy. It takes a lot of hard work and discipline. But it is not impossible. All you need is a plan—and we have got one for you.
The key question is when you take a moment to dream, what does your life look like with no debt? What would you do if you didn’t have any debt holding you back? Would you save and invest more, travel, or start a business?
The truth of the matter is that debt robs your present and steals from your future. Debt keeps you stuck in a cycle that makes it impossible to build wealth and shoves your goals far off into the distant future.
Get On A Plan That Works
Here’s the deal: If you are overwhelmed by debt and don’t know what to do and you are ready to fight and clear your debt, debt review is the plan for you. You will learn all you need to know about how to budget, paying cash for household expenses and spending less, saving for emergencies, paying off debt and so much more.
Talking about saving for emergencies, it is important to have savings for emergencies especially when you are under debt review. We normally recommend to our clients to put away as much as R15 000 in savings for emergencies. This allows you to not be reliant on borrowing to cover emergencies (e.g sickness in the family), that might arise. Not sure how to achieve this? Read how to save up an emergency fund. Need help? Contact our consultants and take control of your finances.
Roll The Debt Snowball
If you are already on debt review, the plan is flexible and allows you to use the debt snowball method. The debt snowball method is a simple plan to help you get out of debt fast.
In short: Start by listing out all your debts from smallest amount to largest amount (don’t worry about the interest rate). Keep paying all the minimum payments on the debts like normal, agreed as per payment arrangement negotiated by your debt counsellor on your behalf. But give that debt with the lowest balance on your list special attention. That’s the one you’re going after first. Any extra income you get goes to pay that debt. Pay it off as fast as you can. Once it’s paid off, take the amount you were paying on it and roll that over to your next debt. If you keep this up, you will pay off every single debt on your list. Your debt counsellor can help you implement the debt snowball method. Contact our consultants to get started.
Remember...
It is going to take time, but it can be done. People are making the decision to apply for debt review to eliminate debt and change their lives forever every day. Now it’s your turn to take control.