As consumers struggle to make ends meet due to high escalating of living, Chantel Pieterse, head of operations at Unifi South Africa, has shared vital tips on how South Africans can manage their financial affairs
Take control of your spending habits
Pieterse advises consumers to have a clear view of where they are overspending by checking bank statements to see where most of the money goes.
“If you’re overspending on non-essentials like takeaways or fashion accessories, consider doing without these luxuries for a few months, and put the money you save towards repaying your loans,” she said.
“Also, look at your essential purchases to see where you can save. For example, embrace grocery store promotions and discount store cards. Set up a weekly meal plan and shopping list to make sure you only buy what you need.
“Every bit you can save and put back into your debt repayments will help to relieve some of the stress. Once your loans are paid off, you can breathe freely financially and treat yourself to some of those luxuries you sacrificed.”
Set up a budget and stick to it to manage loans
She encourages consumers to draw up a monthly budget that could help them take control of their loan repayments.
This, she says, shows consumers exactly how much money they spend in a month, and how much they have left to pay off their debt.
“If you’ve never set up a budget before, it’s very easy, list all of your essential expenses such as rent, transport and food, as well as loan instalments and bills like school fees.
“Add up the total cost of these expenses and deduct it from your salary amount. Put anything you have left over towards your loan repayments or save for a rainy day.”
Follow a plan that makes paying off loans easier
There are various plans consumers can follow to make paying off their loans less stressful. The debt snowball and avalanche methods are two popular choices, says Pieterse.
“See which one could work for you, with the snowball method you put all the extra cash you can into paying off your smallest loan first while making only the minimum payment on the bigger loans.
“When it’s paid off, you also put the money that’s been going into the smallest loan into the next biggest loan/credit instalment. Do this until all of your debt is paid off.
“With the avalanche method, you pay off the instalments with the highest interest rates first. Then you put the money you’ve saved on these interest rates towards paying off the smaller loans,” she explains.
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