Millions of South African’s are drowning in debt but here’s the good news:
There’s a little-known way out of heavy debt that most people have never even heard of and by using the method below, it is possible to reduce how much you pay every month, lower your interest rates, and get immediate relief.
This means you can be debt-free in only 12 – 48 months if you do not have secured credit (vehicle finance or a bond) and up to 60 – 240 months if you have secured assets (Please note that these periods differ from individual to individual).
The Little-Known Choice Most People Don’t Think Of.
So, what’s the trick?
Debt Counselling – its purpose is to get you out of debt and reduce the amount you pay!
After you get started on your debt relief plan, you might find yourself paying less every month, and actually getting out of debt faster!
Who Should I Work With? You may ask…
The National Debt Review Center is one of the most reputable companies in the industry.
We are one of the top-rated debt counselling firms in South Africa and have helped thousands of people get out of debt and manage their debt effectively.
If you’re curious, get a free quote and see how much your debt can be reduced. Getting a quote is 100% free, comes with zero commitment and getting a quote won’t hurt your credit one bit. See how much you can save – get a FREE quote!
Enough said, let’s get to business and explain why you’re here.
How to Be Debt Free in 12 – 48 Months?
Option 1: The Do-It-Yourself Program.
You can begin working to reduce your credit card balances in several ways on your own. Here are just a few tools you can use to get out of debt faster.
- Cut up your credit cards or put them away. If you don’t have access to your credit cards, you will be less tempted to make impulse purchases when you don’t have the cash on hand. As you continue to pay down cards without adding to the balance every month, you will dig yourself out. Hide your cards. Live on cash. Act like your credit cards don’t exist and then you can be free from them.
- Focus on paying off the credit card with the highest interest rate first. Then pay off the second card and third in the same way. As you make progress you will be encouraged to keep going to paying down your debt. This has been called the Snowball Effect. A little saving grows bigger and bigger with each card you pay off.
- Create a budget and stick to it. If you can develop a budget that gives you extra money each month, then use that to pay down your credit cards. There is little doubt it’s the most expensive money you use. So, saving money and investing in yourself by paying off your credit card bills will create a lifelong skill of living on a budget, paying off your credit card bills and using extra rands for building savings.
- Face your problem. To begin living debt-free, you need to realize why you keep falling into debt. By understanding the problem, you can begin to prevent yourself from falling back into a debt cycle.
- Add up your total debt. This is related to facing your problem, as adding up your total amount of debt will help you realize how to gain control of it. This will help you truly understand how much debt you are dealing with.
- Start paying off debt. Paying off debt can lessen your stress levels, allow you to have more money to put towards something else (such as retirement), stop paying interest fees, and more.
- Create a vision board. A visual reminder, like having your financial goal displayed in front of you, can motivate you towards living debt-free.
- Start an emergency fund. An emergency fund can help you get out of the revolving debt cycle. This is because if an emergency does arise, you won’t be forced to rely on debt in order to solve your situation. Instead, you’ll have your emergency fund to bail you out!
Related: 10 Habits of Debt-Free Families.
Option 2: Debt Consolidation
If you have several high-interest credit cards and the interest rates and fees are getting too high, you can look for a consolidation loan. This is a loan that consolidates all your credit card debt into one bill and one payment per month.
Typically, the interest rate on the consolidation loan is less than the rate on your credit cards. However, your principal will not be reduced. You are combining all of your debt into one bill and paying one bank versus several. It’s more convenient. Your credit score will determine the rate you pay for the new loan.
Debt Consolidation loans are typically single percentages and not double-digits, which is where the real savings happen. It is important that you know your first payments will be mostly interest. Keep that in mind as you figure out how long it will take to pay it off.
Option 3: Debt Counselling
Debt counselling was introduced in 2007, with the National Credit Act 34 of 2005 and the service was designed for consumers that are over-indebted.
One of the major advantages is that debt counsellors can, negotiate with the customer’s creditors to restructure an affordable single repayment amount.
Option 4: Avoid Debt.
Know how much is coming in and how much is going out.
Write down your monthly income and circle it. Then, create a column of all your monthly expenses. Create other columns with all of your debts listed with their interest rates.
This simple act of assessing and monitoring your finances can keep you out of debt since most people overspend without knowing.
Don’t spend what you don’t have.
With the holiday season upon us, it’s easy to feel pressured into spending money on gifts, entertainment, and decorations. About 1 in 10 South African’s takes out a loan to cover holiday expenses. While we want to make the holidays special, we need to prioritise certain things, like rent, food, and utilities.
So, make a budget and stick to it. Determine how much you can reasonably spend while still having enough to pay the bills and prevent debt.
Anticipate and save up for major purchases.
If you know you are going to buy a car, go on vacation, or purchase a computer, create a savings account. This can be done with most savings accounts. Contact your bank for help.
Once you have set up a savings account, you can name it for any financial goal you have: “Wedding,” “Travel,” “New Car,” “Down Payment.”
The next step is to set up automatic transfers from your account into your savings account. Start by putting aside about 3-5% of your income and make changes from there.
Always read the fine print.
Whether it’s financing or a new credit card, always read the fine print. Zero interest and zero money down can seem attractive, but you’ll want to look at the details. What if you miss a payment or make a late payment. You could end up spending a lot more than anticipated.
When making any credit decision, make sure you shop around and choose the best option. Remember, many of the advertised “interest-free” claims only last for a short period of time. Be sure to budget for all costs and add the payment dates on your calendar.
Planning, budgeting, and organization are the keys to a healthy financial future. Since there’s so much to remember when it comes to your finances, we recommend automating as much as possible and adding everything to your calendar. Make sure you always pay your bills on time, even if it is just the minimum payment. Otherwise, you could be slapped with additional fees.
Contact The National Debt Review Center today for your free debt consultation!
We can help you plan for a debt-free life.