Cutting from all edges.

Cutting from all edges.

South African consumers are reeling from the tough economic conditions, which have

led to many of them becoming over-indebted.

• Know your financial status – It helps to know all your creditors.

• Communicate with your credit providers – When you are experiencing problems

repaying your debts, contact your creditors and discuss your situation with them.

• Avoid getting more debt, rather downgrade and change your lifestyle – If you drive

an expensive car consider a down grade for a less expensive car as it’ll reduce your

monthly instalment thus enabling you to pay other debts. Also consider using public

transport.

• Look twice for a better price – When you do your groceries compare prices across

major stores and settle for less.

• If you need professional support and a helping hand, contact a registered

debt counsellor on 021- 447 4100. Remember that when you are under debt

counselling you are not allowed to get further credit until your debts have been

settled.

• If you are facing repossession, seek advice as you have rights.

Below is a list of items that you can cut from your

budget in order to stay afloat:

• Alcohol

• Tobacco / cigarettes;

• Entertainment

• Club membership

• Pay TV / Satellite TV

• Holiday clubs

• Gambling

In addition, go to your financial advisor and review the insurance contracts that you

have. You may find that you do not really need some of them. Remember to get advice

on this before making any decision.

“Only buy items that you cannot survive without and look for specials. If you are used

to buying takeaways or eating out cut on this and prepare your own food. This may also

prove to be healthier,”

Use any savings you are making from your adjustment to pay the most

expensive loans such as micro loans followed by your credit card.”

For more info: Website www.jjerr.co.za