How to become debt-free sooner!

I’m often asked how one can shorten the debt review process and regain financial stability sooner. Here are some excellent tips to help you on your way to financial freedom.

Getting a Bonus in December?

Use 10% of your bonus to celebrate Christmas and pre-pay your children’s school fees for next year, or pick one debt and repay it completely.

You could also consider putting away some money as an emergency fund to cover any unexpected expenses that you may have over the coming year.

You are not alone

Thousands of consumers are in the same boat as you and 90% of them meet their monthly repayments every month. Thousands of consumers also complete their debt review journey each month and receive their Debt Free status.

It’s a long and hard journey – but you could be one of them!

Paid up accounts

As soon as an account becomes paid up, remember to ask the Credit Provider for a paid up letter and then send this on to your Debt Counsellor. Every paid up letter marks an important milestone in your debt review journey and will motivate you to get the next one.

Plan to pay more

Did you know that you can shorten the period of debt review by paying a little more every month?

Even a small amount extra each month may significantly reduce your period of debt review. For example, paying R 100 a month extra on a total debt of R 50 000 will reduce the period of debt review by seven months!

This article is based on an article first published in the Debt Counselling Association of South Africa’s Consumer Newsletter: November 2015.