How to get rid of debt South Africa

Overview

Most people want as much to avoid debt but people have increasingly failed to avoid or even escape the consequences connected with debt.

Being in debt can be a constant worrying experience; whatever the outcome, if you signed for a loan, you are obliged to pay it within the required time frame.

• Desist from making unnecessary borrowings: To get out of debt fast, you should stop spending the money that you have borrowed for your lifestyle. This means no more test driving brand new cars that you don’t have the cash to pay for.
• Make a budget: Drafting a budget that caters for your expenses is very important to get you out of debt in a short period of time. Making your own budget will help you figure out how much money is left after paying all the expenses. If the money that you are left with is below the required amount, this means you have to increase your surplus and use that money to pay down your debt. One would ask; how do I increase my surplus after allocating some of the money to all the things that I have budgeted for? It’s simple; go through your budget once again and trim it down by removing items that are not of much priority. That way you can increase your surplus.
• Apply for a consolidation loan: You can apply for a consolidation loan if you have many debt accounts, you can do this at a financial institution that allows you to pay other accounts and remain servicing the consolidation loan account only, this goes a long way in helping to slowly manage the debt and get out of it.

If you feel like the above information is not enough to get you out of debt, you can visit a professional debt counselor.