Cape Town – It’s very easy to get into debt, but very difficult to escape once the debt monster has you in its clutches. Here are some practical tips from the experts at Debt Rescue on how not to get into debt in the first place:
– Save for luxuries and buy cash;
– Draft a monthly budget and stick to it;
– Live within your means;
– Credit applications should only be used for buying expensive assets like properties and vehicles, and not for nice-to-haves or day-to-day living expenses;
– Don’t try to keep up with the Joneses;
– Save for unforeseen expenses such as car repairs; and
– Educate your children on how to work with their finances – when done from a young age, financial education has a big impact in their adult life.
Tips to keep your debt at manageable levels
Don’t let debt get out of hand. Here’s what you can do to keep your debt levels down:
– Arrears and arrear interest can have a negative impact on your accounts. It is therefore imperative to pay your accounts on time;
– Don’t max out your accounts;
– Refrain from using one debt to pay another;
– Don’t use credit cards to pay for day-to-day living expenses; and
– Try to pay an extra monthly payment towards your debt, as this will ensure that it is settled sooner.