In this section, we share 5 simple ways on how to reduce your debt repayments and gain financial freedom this year.
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How To Reduce Your Debt Repayments in South Africa?
How to Reduce Your Debt Repayments?
- Take the 20-second survey to see if you qualify HERE.
- Apply for Debt Counselling HERE.
- Settle your debt – Call your creditors, request settlement discounts and settle your debt.
- Contact your creditors about repayment plans – Speak directly to the companies to which you owe money. They may be willing to set up a repayment schedule that is more realistic for your budget and reduce monthly payments.
- Develop a budget that will help you to track your expenses – This will help you to monitor how much you’re earning and spending, and what you’re spending money on. Being more aware of your income and expenses can help you to eliminate or reduce unnecessary costs.
Here are other frequently asked questions about reducing your debt repayments.
How to pay off a large debt?
1. Pay more than the required minimum.
2. Try to pay more than once a month.
3. Pay the most expensive loan first.
What is the best way to reduce debt?
1. Ensure that you pay more than the required minimum amount.
2. Pay more than once a month. …
3. Pay off your most expensive loan first. …
4. Consider the snowball method of paying off debt. …
5. Keep track of bills and pay them in less time. …
6. Shorten the length of your loan. …
7. Consolidate multiple debts.
Is debt reduction or reducing your debt a good idea?
Yes-If your financial situation is so difficult that you can’t make any payment on your debt.
Can I settle my debt for less?
Correct – You can pay less than the full amount owed but you will have to negotiate with the creditor or debt collection company to settle the debt.
How can I get out of debt without paying a cent?
You can get out of debt without paying only if the debt is prescribed or the credit was granted reckless. Kindly contact a Registered Debt Counsellor for more information and a free assessment.
Is settling an account better than not paying at all?
Settling an account is way better for your credit score than not paying anything.
Will settling an account increase my credit score.
Yes – Settling an account is way better for your credit score than not paying anything at all.
What are the advantages of reducing your debt repayments?
The most important pros of paying off debt is that you can reduce the amount of interest paid overtime. This is particularly helpful if you have high-interest debt. It can help improve your credit score. Once your debt is paid, you can focus fully on saving and other financial goals.
What are the main reasons for over-indebtedness in South Africa?
There are several reasons why we are failing to manage our debt responsibly:
1. Loss of employment or income if you are retrenched or your business closes down.
2. Reckless lenders provide credit to individuals who are unable to pay it back.
3. Living beyond your means as the cost of living rises.
4. Irrational and impulsive spending.
If your goal is financial freedom – and living your best life with no financial strings attached – the most important place to start is by reviewing your debt. You’ll be amazed at how much money you can save (and grow) once you’re officially debt-free.
Debt is one of the biggest causes of stress for South Africans, yet many of us are drowning in it. Sometimes it’s a result of poor decision-making and other times it’s because we need a little help in realizing our dreams of studying or buying a car or house, and then there are all the times we’re hit with unexpected expenses for which we’ve not budgeted.
Hopefully, you have enjoyed this article as much as we have enjoyed sharing it.