Saturday, October 30, 2010

Debt talk!

I am amazed at the amount of debt in which people find themselves. Quite honestly, I would probably have a heart attack if I had to be in some people’s shoes.

Having debt is not the problem as such, it is how we manage our debt. Do we really need to have four or five credit cards and an account at almost every clothing store?


Do you really need to buy all the things you buy? Do you need to have the latest fashions or the most up to date cell phone or newest car? Is it really worth the sleepless nights you have trying to figure out how to pay for all of it. Ask yourself how others, who do not have all the luxuries you have in life, manage.

Does your grocery bill really have to come to a couple of thousand rand every month? And at the end of it all you have nothing to show for it except some extra kilograms which affect your health anyway.

Just as with changing your diet, reducing your debt is a slow and tedious process. It is hard work and you will not see the results immediately. The sooner you start, the sooner you will see things changing.

“How do I start?” you might ask. STOP BUYING! Every time you purchase something ask yourself whether you honestly need it. If you could possibly do without it, do not buy it.

Start by assessing your monthly grocery bill. Do you really need to buy things such as chips, biscuits, cooldrinks and other luxuries in bulk? Is it possible that you could reduce the amount that you buy?
Instead of stocking up try buying luxuries on weekends only or when you are expecting guests.

Next take stock of all your accounts. Choose one which you would like to get rid of the most and start paying it off slowly but surely. As soon as you have paid it off cut up the card and start paying off your next account.

I know that this is really hard to start doing but believe me when you have managed to pay off your first account you will be so proud of yourself that you will look forward to paying off your other accounts.

Just imagine having all the money you were spending on your monthly bills available to spend on yourself when all your debt has been paid off. Eventually you will be able to say that your car and the bond on your house has been paid off.

Then you can say good-bye to sleepless nights and hello to a whole new way of living.

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