Become debt-free by avoiding the causes

Many South Africans buckling under the heavy weight of debt describe a sudden, ‘overnight’ realisation of the size of their financial dilemma. The gradual build up to a financial meltdown seems to go unnoticed until one day, often in a person’s mid- to late twenties, when he/she makes an assessment of the future and sees only crippling debt.

Whether you are already in the process of professional debt relief or considering getting professional assistance, it is valuable to go back to the root of your financial dilemma, in order to avoid the mistakes that led to your debt in the first place.

To become and STAY debt-free, the following mistakes should be avoided at all costs:

  • Not working with a budget or spending plan. It is vital to set clear spending goals: without them, you will have minimal chances of staying out of debt. You cannot afford to lose your extra income towards high-interest monthly credit payments. A clear and fixed budget will help you live within your means and make it possible to build up an emergency fund.

 

  • Making irresponsible purchases will make it almost impossible to become debt-free and destroy any progress you’ve started to make in your debt repayments. Self-discipline is the key secret to becoming and staying debt-free. Aim to weigh up the consequences of every purchase and avoid those that will steer you away from your ultimate goal: living a debt-free life.
  • Purchasing a new car every few years. Buying a new car when you are only a few months away from paying off your current car loan is not a financially sound decision, even if you have a steady income – in fact, it will defeat your best efforts at becoming debt-free.

At ZeroDebt, we understand the stresses of debt and can help you free yourself from the debt cycle. If you see no way out of debt and cannot manage your financial obligations, ZeroDebt offers professional and expert debt relief services. Contact us at 087 702 1738. ZeroDebt is registered with the National Credit Regulator.