Debt Free Solutions -
Proactive Prescription

Debt free solutions - no magic wand but a simple savings plan requiring perseverance, commitment and saving-wise advice.

We've all been in debt at some stage in our lives.

Debt management advice is relatively simple in theory - save more and spend less - right now.

Student loan debt consolidation, business debt consolidation or even advice on debt consolidation and management all require a proactive approach.

Minimize spending and maximize saving!

The problem ...

Simply put - we do not save enough, we start saving too late in our lives and our "compulsory savings" are too tempting to dip into every now and again.

The downside - we use our compulsory savings (or potentially even more financially draining ... debt) to finance consumable goods like cars, expensive holidays and kitchen renovations.

Plummeting freefall or a gradual downwards spiral - we're caught up in a web of paying more to service our debt and of course we're left with less money to save.

The result - when we reach retirement age, we will in all likelihood, not be able to maintain our current standard of living.

The plan ...

We have to save to meet:

Our short-term financial needs (not wants) - things like monthly groceries, school fees, replacing broken appliances, utilities and medical aid.

Our medium-term financial needs (not desires) - possibly a deposit for a home, money for a new or used car or an emergency fund up to four times our net monthly income.

Our long-term financial needs (not luxuries) - our retirement!

Proactive prescription ... budget properly for:

• absolutely necessary monthly expenses

• absolutely necessary savings (short; medium and long term savings)

• absolutely necessary quick repayment of your debt for rapid debt consolidation and management.

and then

• if there is still money left over, budget for the "nice to haves".

• do not use debt to finance items that you want but don't really need.

An effective, practical and pragmatic budget must detail the following:

• outline what you plan on spending your money on in a particular month?

• details of exactly what, and how much, you spent your money during the previous month?

• pinpoint where you over-spent or under spent?

Armed with realistic tips on budgeting and an unwavering budget you will be more likely:

• to deal with unexpected financial emergencies

• to weather increased interest rate hikes

• to start reducing your debt levels here and now as part of your debt free solutions

Reduced debt levels means:

• you spend less of your disposable income on repaying your debt

• you spend less of your disposable income on servicing the interest on your debt

• you have more money to save for your retirement.

Debt free solutions - quick fixes don't work. Economize now so that you won't need to compromise in the future.