5 Things A Debt Psychologist Wants You To Know

Are you drowning in debt? Here are five top tips from a financial expert...

- Leigh Hermon

Debt’s an easy thing to get into, but getting out of that hole is much harder. According to the South African Reserve Bank, about 73% of a household’s annual disposable income goes to servicing their debt alone, so out of every R100 earned, R73 goes to paying off debt. Winnie Kunene, who is a financial psychologist and a trustee on the board of 1Life’s Truth About Money, a money management and training initiative, gives us her advice on moving towards a debt-free life.

1. More than money

Debt doesn’t only affect your bank balance, it can be incredibly damaging to a person’s psyche, explains Winnie. ‘Research shows that people who have high levels of stress over their finances are at a higher risk of insomnia and depression.’ Yes, it’s easier to pretend your impending financial disaster isn’t happening, but it will need to be addressed at some point.