Managing Debt

Are you just paying off debt and never seem to have any money left over for yourself?
Do you leave those letters unopened and screen your calls?

Well, you know that only makes matters worse. You know it is only costing you more and more in interest. And leave it long enough, you get blacklisted.
Not what you want to ever happen! It's robbing you of your peace of mind.
Yes, you may win the lottery, but so can 14,000,000 others!

NO, only by confronting your problems now and setting up a basic plan you start to can turn things around. You need to Manage Your Debt!

Identify the Problem.

You can't solve your problem, if you don't know what it is!
But most people try to do just that. They'll say, “The problem is, I just need more cash.”
But that is not the answer.
You need a plan of action. Start by answering;

• How much am I worth?
• What am I earning?
• What am I spending?
• How much do I owe?
• What is my credit rating?
• What interest rate am I paying on my bond, credit card and loans?
• When are my payments due?
• How much money do I need to clear debt?

You may not want to answer these questions, but you will feel better once you do.
And hopefully, your situation may be better than you think!

Think of Solutions.

Write down anything that you can think of – even if it seems silly or impossible. Let your brain reach for ideas.

Can you cut down on expenses? Can you sell anything?

Ask for an increase in salary?

Work overtime?

Claim those outstanding medical bills?

Extend you bond?

Take lunch to work?

Cut down on those manicures?

Save petrol by planning your trips and taking that unnecessary weight out of the car boot.

Entertain at home more?

Cut out those magazines.

Spend more time at home, reading, gardening or just enjoying your property?

Cut down on those holidays.

Start a lift club.

Now Choose a Solution.

Go through your list and cross off those that are not realistic. You may have more than one answer left and that's okay as long as you move in one direction.
Don't criticise yourself if you have some answers that you should have done a long time ago.

Take Action!

Start TODAY. Focus on one solution and work on getting it going.

Evaluate your Plan.

Did you solve the problem? If you did not, then chances are you have not identified the problem. Don't go back and try think of solutions. You must identify the problem first.

Here are some ideas to get that extra cash you want;

• Start a Saving Account. – Yes, interest rates are low, but you will get used to paying yourself first and not using all you have earned every month. You may want to invest in a unit trust or endowment policy. It's a great way to force yourself to save.
  CALL ME.

• Save your change. Put it in a piggy bank! You'll be surprised how quickly it grows. It's money you will never miss and can be the basis for your emergency fund.

• Don't rely on your bonus or tax refund to clear your debt. What if you don't get the money? Don't max out your credit card, thinking you will pay it off with that bonus. More than likely you'll find yourself in the same position again –after having paid it off. During the next year, you find you are short of cash, max the card again and land up where you started.

  Only buy what you can pay off on the due date. Estimate what you can afford to pay back each month and try stay close to that figure. Don't buy those expensive items on your card. Save up the money and then buy for cash. It feels great.
  If you “borrow” money, you pay for it – always!

• When you get your increase, immediately run a debit order into an investment. Pay yourself first. After all, before the raise you were living on your lower salary.

• When you get medical aid refunds, or that rare refund from SARS, save it. Keep it away from your daily spending.

• Finally, you need to commit to your plan. Decide now, that you will live off what your plan tells you and that you'll save the rest.
  You'll be surprised at the peace of mind you will feel when you start paying yourself.

Debt Consolidation

If you want to consider a strategy of debt consolidation please click here.

If you have a DEBT concern, please contact me today. Cell: 083 377 8893

Don't leave your concern here. Call me for advice - no obligation!

Especially if you are to Manage Debt.

pyburn@peterpyburn.co.za.