Expert insights on managing debt
How are you guys holding up? Over here at Libertine Consultants we are working hard to ensure that our clients are able to keep things on an even keel throughout the third wave of COVID-19 that is rushing through SA like wildfire as frosty winter temperatures take hold.
We all knew it was coming, but that does not make the newly tightened lockdown measures any easier to deal with. The economy continues to take a hit, which means that companies are forced to make more job cuts, many employees are being put in a position where they need to take pay cuts, and yet the price of things like fuel, food and electricity continues to rise.
It’s a perfect financial storm. In fact, many South Africans are now in a position where up to 60% of their monthly income goes towards servicing debt, or they find themselves having to take out loans just so their debit orders won’t bounce month after month. This is not sustainable, but what exactly is the alternative?
Sit with your statements
Swiping or tapping a card is so effortless these days that many of us don’t even know where our money goes throughout the course of the month. Take some time to sit down with your bank statements (at least 3 months’ worth), and sort your expenses into categories like groceries, home maintenance, education, entertainment etc. This will help to you determine where you can trim your budget.
Differentiate between good and bad debt
All types of debt are not created equal. Paying towards something like a house on a monthly basis is a good move, because you are gaining an asset. However, if you are taking on debt to buy groceries or clothing (things that are consumable or aren’t assets), you should be looking at a better solution.
Draw up a plan of action
The hard truth is that your debt is not going to manage itself, and if you ignore it things will only get worse. Start by cutting down on expenses where you can, and rerouting that money towards debt repayments.
Feeling overwhelmed? Contact the Libertine Consultants team today!
If you feel like debt has you in a constant grip, and there is no way to gain control of it, it’s time to get some expert help. Get in touch with Libertine Consultants today. Remember, this is what we do every day; our team will be able to provide you with good advice.
Best of all - if you contact us before the end of July 2021, you can take advantage of discounted rates on our credit clearance services. New clients get 15% off, and existing clients get 5% off their full outstanding balance. We are also offering family mediation sessions at a discounted rate of R500 per hour, so bear that in mind if you or any of your friends or family members could benefit from this offer.
Need legal advice? We can assist with that too! Submit your legal inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward.
