If you’re like most people, debt is an unfortunate fact of life for you, and thinking about how to pay off your debt – sometime in this lifetime – likely occupies a good deal of brain space – and not just when it’s time to make another set of New Year’s resolutions.
For some perspective, and to help you feel a little less alone in your debt journey: the average person’s household owes over R200 000 in credit card debt, and two out of three millennials have at least one source of long-term debt, like student loans, home loans or car payments.
But just because debt is normal doesn’t mean it feels any less intense, frustrating or even demoralising. The good news is that debt doesn’t have to destroy or take over your life. The key is to form a plan for how to pay it off, take stock of your finances and really understand what you’re working with. Small steps to big results. Here’s how to get started.
1 KEEP TRACK OF YOUR SPENDING
It’s surprisingly easy to go through life with no clue of how much you’re spending or where your money is going each month. If this sounds familiar, try recording your habits. There are easy systems to help with this, like Mint (free on iOS and Android) or You Need A Budget (free on iOS and Android).
2 THEN MAKE A BUDGET
You’ve heard this advice a million times, but it’s time to actually do it now. To help get an idea of how you want your budget to work for you, think about your short-term (in this case, anything lasting less than a year) and long-term goals (lasting one or two years, or more). Be aware of ways you’re spending money without even realising it. Consider what kind of debt you’d like to pay off and how much. Write your plan down, and if you feel like you need extra accountability, consider a cash envelope system to set boundaries. Spend only the amount designated for that particular envelope.
3 CUT COSTS FROM BIG EXPENSES BEFORE FOCUSING ON SMALL ONES
This story is from the May 2019 edition of GLAMOUR South Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2019 edition of GLAMOUR South Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Are you considering moving to UK?
Bestselling author, Sam Beckbessinger is also a seasoned mover, and her latest offering, Moving to the UK, offers helpful tips, funny anecdotes and to-do lists to help you navigate this transition.
A beauty solution
At Standard Beauty, they take pride in being an all-women-run team, bringing diverse perspectives and unparalleled expertise to the skincare industry.
3 Things to Do When You Overthink Everything
How to overcome analysis paralysis.
A la MODE
With bold looks and exceptional value for money, the new Omoda C5 has made a big splash in the local motoring scene.
Spotlighting ABANTU FOR THE PEOPLE
Small businesses play an important role in the South African economy, and we're playing our part by showing them some love. This month, we shine the spotlight on Abantu Media, cofounded by Jay Wabantu who is also a tattoo artist and photographer.
CELEBRATING EMPOWERMENT
Pan-African bank Absa partners with Glamour for their influential Women of the Year Awards 2023
TAX SEASON UNPACKED
The word 'tax' stirs up many emotions, so we've roped in Tax Specialist, Natasha Lorde to answer your questions and help get you ready for Tax Season.
It's a COMPARISON trap
Even picture-perfect couples go through rough patches. Here's how to avoid the social media comparison trap.
Embracing CHANGE
It's time to stop comparing your current body to your former one. Romanticising the past is easy, but we're not meant to look the same our whole lives.
Healing YOUR INNER CHILD
The journey of self-discovery is nuanced and you may have discovered a younger you that needs to be seen and heard. Certified Meditation Practitioner, Melissa Lainn, shares her approach to healing the inner child.
