Relieve Your Debts!

Slowly but surely the economic outlook of South Africa is starting to improve, and while the recession has made ‘savers’ out of some there are still far to many South Africans who are in debt way over their heads. Those who are able to ‘put some away for a rainy day’ are by far the most sensible as it is expected that there will be ongoing inflationary pressures for a few months to come. The prices of items in the grocery stores have for the most part stabilised but are by no means static as yet. And while interest rates are markedly down on this time last year there is no further decrease expected any time soon.

With the festive season on the approach (who can miss it with the shops all bedecked in their fabulously glittering, twinkling finery) you should be more cautious than ever about how you spend your money, and most importantly how you save it.

If you are going to be getting a year-end bonus make sure you apportion it in favour of your creditors. A good idea is to work towards paying off the highest interest bearing accounts first (i.e. the debts that are quite literally costing you the most) and the paying more towards your other debts when the most expensive ones are settled.

If you find that you are not getting anywhere close to repaying all the creditors (year end bonus or not) to whom you owe money you should consider Debt Consolidation. While a debt consolidation loan is not always easy to get, it is definitely a proactive step for you to take towards reigning in, and settling, your debt
Debt consolidation can be very effective if you have a number of high interest rate loans. One of the best ways to reduce your interest payments is to take out a home equity loan. In other words: if you have built up equity in your home you may borrow against that extra value. Another way is to apply to the bank of your choice for a personal loan that will be equal to the value of all of your outstanding debt.
Your priority over the festive season and in to the New Year should be to Repay and Reduce. Repay as much of your debt as possible and thereby reduce it to a more manageable level.

Here are some excellent tips for saving over the festive season:

•    If you haven’t budgeted for a trip away, stay at home
•    If you haven’t saved, don’t borrow to spend
•    Avoid buying on impulse – resist those sale signs
•    When you see sale, think save
•    Make Christmas gifts instead of buying them
•    Invest in money boxes as gifts for children and teach them to save from a young age
•    Saving is a mindset; live economically and do not waste anything of value
•    Use credit cards sparingly and carefully, but avoid them if you can
•    Don’t make up excuses about why you don’t save
•    Shop around before you buy

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