This does sound like a strange topic, but when you combine being positive with debt review, good things can, and will, happen. It’s all about having a positive attitude to debt review.
How to combine positivity with debt review
As with everything in life, you tend to attract the same type of people to you. If you like something, you do it and often it goes well. But, if you don’t like something and you have to do it, then it goes badly. That’s how life goes
And it’s the same with debt review
For most people it is not something they planned to do, some people still manage to turn it into a positive experience and some people allow it to affect them negatively.
After over 11 years of debt counselling and seeing thousands of people, we have discovered that it’s the people that make it a positive experience. There are many thousands of people who have successfully finished the process, and can now carry on with their lives.
For example, if someone under debt review paid off in R6 000 installments monthly, they will have an extra R6 000 per month when they have finished the process. And bonus, they will have no debt either. Can you imagine how happy that person is?
What debt should the average person have?
There’s the famous saying, the only good debt is no debt. If you can achieve that, it’s wonderful, but for the average person, I think you need 3 types of debt:
- Home loan.
- Car finance.
- Credit card.
I put home loan and car finance together for the same reason. The average person can’t afford to pay cash for a house or car. And the interest rates are lower compared to most other types of finance.
The other credit I believe you need is a credit card, and this comes with a warning. This credit card is for emergencies only, and if you are not disciplined, then leave the credit card out and stick to the car and house finance.
If you are disciplined, then get a credit card with the highest possible limit. Put it somewhere safe, and only take it out for real emergencies. For example, many hospitals will not treat you without a deposit and you can use your card for that. Or, if your car breaks down and you have to get to work the next morning, you can use your credit card for this emergency.
What if I want to buy shoes and sports equipment or a new fridge and I don’t have enough cash for it?
First thing is to save, open a separate savings account and save for a new cricket bat or a fridge.
The other option is to ask the store of they do lay buy, and pay it over a few months and then get it when you have finished paying.
It will cost so much less to save or lay buy than to buy on credit or take a loan to buy it.
You will have to wait longer, but you will appreciate it more. You will also appreciate the interest, initiation fees and service charges that you don’t have to pay when you go into the shop and buy it cash. Perhaps even try to get a cash discount when you pay.
That has to be a smarter option than a loan.
ALSO READ: What is good debt and what is bad debt?
In conclusion, be positive about everything and you will get a better result.
Get rid of your debt and try to have only a house and car loans, and a credit card for emergencies.
And save or lay buy for bigger items.
If you need help with your debt, contact RD Debt Counselling today.