Debt is based on a serious agreement and commitment between you and the lender and therefore needs absolute discipline and responsibility.
There are binding agreements made at the inception of the loan between the two of you which commit mostly you to the lender. It is therefore imperative to read the fine print pertaining to the contractual obligations failing which you might jeopardize your creditworthiness.
The three unavoidable binding debt commitments in one’s life are; paying for tertiary education, buying a house and buying a car. The avoidable are, credit card, cash loans, cellphone account, clothing account, food account etc.
By all means try to avoid credit cards as they are tempting and very hard to pay back once you’ve used up the money. It takes between 8 and 12 years to pay off a credit card debt.
According to the Debt Busters survey (SA’s largest debt management agency) South Africans use 65%of their net income to service debt.
Do not bite more than you chew. Stop giving yourself undue pressure because you want please people or be like the Joneses. This will obviously work against you.
In closing, reduce your debt burden by accepting your situation as it is. Live within your means. In other words, only spend what you have on what you can afford.
The more indebted you are, the more difficult it is to get out of that situation.
Tips on how to get your debt level under control:
- Borrow less or responsibly
- Pay back more than the minimum amount due.
- Pay off highest interest loans first
- Adjust your lifestyle
- Sell what you don’t need or use.
- Start a side -hustle or business to help accelerate debt reduction.
Compiler:
CSG Makuwe