4 Debt-Killing Tips Every South African Should Know Of – Our Guide

Mar 19, 2020

For most South Africans, being stuck in a pool of debt is never a pleasurable or desirable experience. If you were to ask anybody in South Africa about what they would like to fix or what troubles them the most, they would most likely talk about their debt. This just shows how commonplace the entire problem really is in the first place. 

Fortunately, overcoming the age-old problem of accumulated debt can be easily done as long as you know the right steps to take. Overcoming your debts and starting with a clean slate that’s free of financial burdens and interest rates can be achieved by considering the following four tips: 

Debt-killing tip #1: Rework your spending habits by cutting out unnecessary expenses

The first solution towards working your way through a pile of debt is taking the initiative to cut out any unnecessary expenses that hold you back from paying for your obligations. 

For instance, swapping your average monthly expense on eating out for a low-cost meal prep program can make a significant difference in how much you can save. Once you’ve made the necessary adjustments to your spending habits, you’ll have enough savings to repay your debts and clear your plate in a shorter amount of time. 

Debt-killing tip #2: Create a budget that you can always stick to

Another important tip that anyone dealing with quite a bit of debt can use to their advantage is that setting a budget can go a particularly-long way.

One of the most common reasons most South Africans fall into an overwhelming amount of debt is that they keep taking out loans and spending without knowing how much they have left for all their necessities. By setting up an achievable budget, you’ll be able to take note of how much you need to spend for your mortgage, student loans, food, gas, bills, and other necessities. 

By the time you finish creating your entire budget, you can put it side-by-side with your monthly earnings and gauge how much you can save or direct straight to paying off your loans! 

Debt-killing tip #3: Prioritise your high-interest loans and pay them off first

A great way to deal with an overwhelming amount of debt is to approach the entire situation at hand while prioritising your high-interest payments first and paying them off first. Following this particular “avalanche approach” will allow you to take on the bigger chunks of your debt pile much faster and yield a far more convenient experience of paying everything you owe in the long run. 

Debt-killing tip #4: Borrow cash to kill your debts

Now, it might sound counterproductive at first, but taking out a loan to handle your current debts means will ease up the entire repayment process by giving you enough funds to pay off your dues in one go. For instance, applying for a quick online loan from Hoopla Loans will provide you with enough funding to clear up your other debts and lessen the amount of monthly payments in the long run— with repayments for the loan itself included! 

Conclusion

Dealing with debt is an experience that is definitely far from enjoyable or easy, but overcoming it can be achieved through the use of a few simple, yet effective tips. By following the tips mentioned above, you’ll be able to overcome your debt in no time! 

If you are looking for cash loans in South Africa to get through a rough time, get in touch with us today to see how we can help you!