Debt Management Tips for South African Consumers
Getting out of Debt
Whether you’re a first time home buyer or already some way up the property ladder, effective debt management and budgeting is an important part of financial security and homeowner success.
As your credit record can make or break your home loan process, it’s vital to ensure that your finances are managed and that everything is in order.
The best way to beat debt is by being money-wise and facing it head on!
To help you secure your financial future and buy property with ease, Bardale Village brings you some effective debt management tips.
Identify Credit Score with Free Credit Report
In terms of the National Credit Act (NCA), each South African consumer is entitled to one free credit report each year.
Keeping an eye on your credit report is important, as it allows you to discover your credit score, correct a poor credit history and identify any records that may have been incorrectly added to your name.
Recent statistics show that only about 2% of South African consumers request their annual credit report from a credit bureaux.
This means that the majority of consumers only discover what their credit rating is when they apply for a home loan, or any other sort of credit.
As it often takes a while to manage your debts and correct your credit rating, making use of your free credit report can help save you time.
The first step to debt management is to evaluate the extent of your financial situation.
This will provide you with the financial information required to draw up a budget, and also help you to assess whether your financial status can be sorted out by yourself, or whether you’ll need expert help.
Make a list of how much you owe each company and the interest rates attached. You can also mark the debts by priority, allowing you to deal with the most important payments first.
Draw up a Budget
Drawing up a monthly budget is important for debt management as it enables you to work out how much you’ll be able to afford on debt repayments.
This makes it possible to devise a repayment plan that suits you.
The Bardale Village first time home buyer calculator can help you to better identify your homebuyer affordability.
Get Expert Debt Advice and Help
It’s often a great idea to get some expert debt advice to help you with your debt management.
The National Debt Mediation Association (NDMA) is a non-profit organisation that can help you negotiate with your creditors.
It may also be worthwhile looking into debt counselling services. Reputable debt counsellors will be able to consolidate all your debt into a single monthly repayment amount, often lowering the interest rates received as well.
Identify ways to Save Money
Drawing up a monthly budget will also help you to pinpoint ways to save money.
Breaking your expenses down into “needs” and “wants” can make it easier to cut back on certain expenses, allowing you to put more of your money towards paying off debts.
Cutting down on credit is also an important part of debt management as it will only add further fuel to the flame.
Smart Property Investment at Bardale Village
Making smart investment choices is another vital part of keeping your finances secure.
Breaking the constraints of rent and putting your money into a property that offers high returns is a big step that most first time home buyers have to take.
Bardale Village is serious about making affordable housing accessible to all South Africans. Our large variety of houses for sale in Kuilsriver area helps make this possible.
Make the smart property investment choice – Apply at Bardale Village today!
You can also connect with Bardale Village on Facebook for any questions or enquiries you may have.