Effective debt management is key
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Continuously implementing a
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debt management plan can ensure that you:
Ativeoliyd. losing control of your debt.
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Find a way out of indebtedness. to reach your finanScitalygonaltsr.ack
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As Carla Oberholzer, debt adviser
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at“DHeabvtiSnagfeahuitgholirgihttys:over your fintraunecfiensanccainalhfreelepdoymouanedxptuernieynocuer dmeobnteisyleinfttuonachpeocwkedr,fiutlwailllyb. eBcuotm, ief ysaoiudr, rwuhthalteasrseentheemfyiv.”eWstitehptshtios bcaerinryg poulatna? successful debt management The first step is to get an idea of
Step 1: Revise your financial situation
sptoiosintisotno. Agnetyswouerrctuhrerseenthfirneaenqciuael
iynocuhrefcikr:st debt management step
What is your monthly income
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DaWftheartddeodeuscytiounrsp? ayment history pWonohrytaortauydr?obeanskysotuartecmrendtist refcleocrtd? The second step to proper debt
Step 2: Compare your current income
management is to calculate your amount to your debt amount
current debt-to-income ratio.
ADdivdiudpe(+(÷) a)llityobuyr my ounrthilny cdoebmtse,
Here’s how in a nutshell:
Mamulotuipnlyt (bxe)fobyre1a0n0y, deductions
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(gross salary amount),
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And, your total/the final percentage (= %) will then give you your debt
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eAnsstiefsysytohuersiatrueaatsioonf. financial sBturreysisnagntdhebeproebaliesmticowr pituhttyionugristeolff. will only cause more long-term pain. hIfoynoeusth. aSvitedaopwanrtannedr, dbiescoupsesnyaonudr tfiohnweaansracdimasleysopituaurgaegtiooaanldss.owyoorukctaongebtehoenr tnoyhoeulrpsyhourtrafnodculosnognteWrmritgeodaolws
2. Make a plan.
them. If you have a budget in place,
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◗ to-incomeAnraytipoe. rcentage above 40 icsenantaagele, rtht esicglons. eTrhyeohuiagrheetrotohveerp-einrdebtedness.
NOTE:
Prioritising debt doesn’t mean not
Step 3: Prioritise what debt to pay
paying certain debts; you should
off sooner
sotbililgmateioentsa. lPlryioruirtisminognythoulyr debt means that you identify the most udsaemyaoguinrgbduedbgtetotoyofiunrdfiwnaynscetos apnady wthDoeerstbehtdsehtbhotaustlodifnfbcseroegoarnsoeurpy. eodurinfitnoaǮgnocoiadl debt’, and debts with no long-term value can be grouped into Ǯbad debt’. revisit it and see if there are ways fyuonudcsatnorwedarudcse pspaeynindginogffodrerbetdsi.rect thSeoemxepteirmtse. sFiynoauncneesecdantobceaolvl eornwhelming, and when you don’t faeseflininanccoinatlraodlvpirsoerfess, smioanyablse, bseuscthpsolamcedotpotigounidseyyoouumanigdhgt inveotyobue aware of. They can help you regain aconndtmroal koeveprlaynosufrocrutrhrenfuttsuirtue.ation From your budget to your bills,
4. Get organised
Now that the groundwork of setting pulpetaebdu, ydoguetshoausladlrceoandtyinbueetnockoemep
Step 4: Set up a personal budget
tahtait.yHoeurceainssatabratsoicffbwuidthg:et outline Take your money amount that comes in (your net income – salary after deductions such as TAX or
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UIF). Including any extra income (inmcomnteh,lfyocroemxamipssleio).n, or rental Minus (–) your money that goes out (your expenditures – debt/ muPcarsleuldnisavtiltis(lnya+oggp)rrcasyeotioedasmuntvsdrieaionmnrdtgsoeop,nbsaiteltyihrgmovlayrietdcinseoeatrnasv.gsirnunecgoehst(investments, pension fund, re
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simply taking the time to organise your documents can improve the management of your personal firneafnercetos athnidngasllmoworeyoeuastioly.find and If you are struggling to meet min
5. Find out your options.
bimilulsm, yroeupasiympelnytcsaonr’thpavaey,ocvoenrtdaucet ypoussricbrledtoitdoirscaunsds pbailylmeresnatsospotoionnass. bTehfeosroeoynoeurryoputdi ontshiasrtehleimbei tetedr. geWnhceynbyuofufearefuabnlde,asntadrtsaent ermegeur
6. Start an emergency fund.
alamrocuonttrthibaut tyiounsettoaisti.dTehtiosciosvaenr
◗ tirement annuity and related), or southcehrassavsianvgisn(gsshfoorrt-etedrumcastaivoingosr, aEnqueamlser(g=e)nycoyufrunmdo)n. ey that you hIfatvheelfeifntaolvaemr ount reflects a surpeylutso, ypoauy coafnf yuosueracdudrirteionntadlembot.nBut, if your amount reflects a minus, you have excessive debt
Stpwerphoia5cc:htUivyseoelyuy. owuirllbhuadvgeettototamcaknleaAgensywoeurrtdheebset
◗ &fivief qnueeesdteiodn, sgetot make sure you continue to budget
professional help properly and manage your debt accordingly:
What adreebyt oaumrofuinnatnscaiarel gdoaamlsa?ging taoreyyoouur fgionianngctioalasditduraetsisoint,/apnady iht owff eofrfelicfteisvteyllye? cWhohiacteesxdpoenyosiuveneheadbitos get rid of? Do you have an emergency fund? And if not, how can you mbuaikldeinrog omnei?nWyohuart obtuhdegrestotloutsitoanrst htrayvienygoeuvtearkyetnhintgotaoccl owunetr(yaoftuer danebdtsptirles, bs)u?t Tsthililsfaincicnlugdsesvevraerdioeubst solutions to consider: Speaking to yoorucronfisnidanercinagl palalengnael,rnaon-ldoabnandkeebrt, consolidation process under the NatciounnasleClrliendgithAact ,ccaanllheedlpdeyboturreevcileawim/ financial freedom again.
Effective debt management is the bksieetyuhataotpitoapnkyiantnogdchoiatnvitseraomlloiaffesytseokruielrldfyi.noTauankwceiialal iacnontndofiakdepeenopwt saettrefpiuttltoaolglteyu.trynouyropulranmgoonineyg unexpected events, such as job loss, a medical emergency, home repairs and car repairs. stWrehsse,nite’sxpesesreiennticailntgo atankyekcianrde of your physical and mental health. Myoaukresesluf wrehyenouyotuakceans,owmhetthiemreittios ygoiungenfojorya. wAahlkeaolrthdyoidnigesto, emxetrhcinsge haneldpayoguooreddsulceepyoruoruotivneeraclalnstarel sos leFvienlsanancdiablosoesttbyaocukrswcaenll-hbeaipnpge. n ftaocaen. yBoynteakainndgcaasntebpepdeidff,icreualtlitsotsictuaaptpioronaacnhdt,oaibmopvreoavlinl,gbyeoinugr okinntdratocky.ourself, can get you back
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