Debt Restruct

The 7 Best Debt Management Tips You’ll Ever Get

Debt Management in South Africa is a trending topic amongst consumers. With consumer debt at all-time highs, reaching approximately R1.9 trillion, the need for people to have a better understanding of debt management is crucial.

Before diving into our list of must-know debt management tips, it’s vital that you understand just why debt management is so important. 


Why Debt Management is So Crucial

With nearly 25 million South African citizens currently in some form of financial debt, it’s never been more critical for consumers to understand the best ways to manage their finances.

It’s a daunting task, but when you understand the importance of debt management, you’ll better understand why it’s so crucial for your financial health and how to manage your finances better. 

Debt management is essential because it helps you to:

  • Understand how much you owe
  • Know your debtors
  • Protect yourself from debt collectors
  • Get help if you’re struggling
  • Prevent your debt from growing
  • Protect your credit rating


Only once you understand all these essential facts can you begin to take the necessary steps to protect your financial wellbeing as well as protect your financial future.



7 Must-Know Debt Management Tips

Debt is a huge problem for South Africans. It has a significant impact on the economy, and the most vulnerable people are hit the hardest. That being said, there are things that every South African can do to help themselves and others.


Here are seven debt management tips that every South African needs to know:


1. Know How Much You Owe

This may be the most rudimentary, yet most important step on this list. Understanding just how much you actually owe to each of your creditors is an absolute must when trying to get your debt under control. You need to know not only whom you owe and how much, but what the terms and conditions of your loan/credit line are because you may end up owing quite a bit more than you originally thought in the long run, thanks to interest charges. 


2. Decide Which Debts to Pay Off First

The next step is to decide which debts you want to pay off first. This is a decision that you will need to make on a case-by-case basis. 

For example, if you have a smaller debt with a higher interest rate, you’ll want to consider paying that off before paying off a long-term debt such as a mortgage loan. By doing so, you’ll be able to save money on interest payments and save yourself from the stress of having to pay for a higher interest rate. 


3. Protect Yourself from Collections – Repay Overdue Accounts ASAP

When deciding which debt to pay off first, you’ll want to make sure you consider any overdue debts. If you have any overdue amounts, it’s imperative you pay these off first.

Otherwise, you’ll find yourself in a situation where you must pay interest charges to the collection agency, or even worse you end up losing a valuable asset, like your car.

Check to see if you qualify to reduce your debt instalment with our quick quiz

4. Create a Monthly Bill Payment Calendar

Once you know whom you owe and how much, it’s time to create a monthly bill payment calendar. This will include all of your debts and all your regular monthly expenses like food, rent, etc.

You want to write down what’s due, how much and on what day you need to pay it. Doing so will help you to stay on top of your payments and avoid any late fees, extra interest charges, or missed debt repayments.


5. Pay Your Bills on time Every Month

With your calendar complete, you want to make sure you are regularly reviewing it to ensure that you are paying each of your bills on time. If you miss a payment, it’s essential that you call your creditors and let them know.

By doing so, you could avoid fines and late fees, and you may also avoid any negative consequences with your credit rating if it’s not a reoccurring issue.


6. Make at Least the Minimum Payment – If Not More

When you’re making your payments each month, it’s crucial that you make the minimum payment at the very least. If you don’t, you are subjecting yourself to fees and fines that could negatively affect your financial wellbeing.


7. Recognize the Signs that You Need Help Managing Your Debt

Sometimes debt can simply be overwhelming. If you’re struggling to make minimum payments or you can’t seem to stick to your spending plan, then you may need help managing your debt

It’s crucial that you understand that asking for help isn’t a negative thing and that it’s actually an opportunity to get your finances back on track.



Help with Debt Management from Debt Restruct

If you’re struggling with debt management, then debt review can help. Debt review is a service where you work with a debt counsellor, and they help you with:

  • Consolidate your debt to simplify payments (one simple repayment)
  • Setting up a repayment plan that lays out your journey to debt-freedom (plus distributes payments on your behalf)
  • More affordable (reduced instalment that is tailored to your income and expenses)
  • Protection from creditors 

If you or a loved one need help managing debt, then contact us today for more information on how our debt review services can help.

Do you know whether you qualify?

Find out if you’re eligible to reduce your debt and protect your belongings.

Disclaimer: This website and any information herein is not intended to be, nor does it constitute, financial, tax, legal, investment, credit, or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified professional directly.

Start managing your money better with Debt Restruct today