10 ways to get out of debt
As you are focused on paying off your debt, you probably had a few moments you felt like you are not making any progress. You probably have felt that there is nothing more you can do to start saving for emergencies while paying off your debt. It does not matter how small the amount you save, remember savings are savings. If you have run out of ideas and feel you like you are hitting the wall, do not worry, we have got you covered.
Here are creative ways to help you get out of debt fast.
1. Cut DSTV bill
You can still watch your favourite soapie, all you need to do is buy a good tv antenna. Put that R900 towards your debt every month. If you cannot live without DSTV then downgrade to cheaper packages. Still you will be saving +/- R500 per month.
2. Open a cheaper bank account
Opening a cheaper savings bank account which is charging very little bank charges will save you some money.
3. Stop eating out
Simply cooking at home rather than eating out can save you a lot of money. If you have many mouths to feed cooking at home saves you money and it’s a healthier choice. Pack lunch for work instead of eating out.
4. You don’t have to send your child to a private school.
In trying to keep up with the Joneses, a number of parents have enrolled their kids in expensive private schools for primary and secondary school and they end up racking up massive debt. We are all aware of cheaper Model C schools offering equally good quality education in the areas that we stay.
5. Ditch expensive universities
Varsity fees are very expensive in South Africa. There are cheaper universities you can get a degree. Your child can also work and put him/herself through varsity at the same time.
6. Manage the water heater / geyser.
With the cost of electricity so high in South Africa, leaving the geyser on 24/7 is not an option. Turning the geyser for 1 hour at night after 8pm is enough to have warm water the following morning. Try this and see how much you save every month.
7. Plan your grocery trips
Make a list and stick to it. Shop around for specials. Stop impulse buying. Remember not to go shopping on an empty stomach.
8. Cancel gym memberships
You still can go for a run outside and it’s for free. There are a lot of exercises one can do without using any equipment.
9. Draw up a budget
Know your income and expenses. Manage the expenses like a hawk. Learn to budget the right way. Look out for seasonal expenses like tv license, holiday travel expenses and split these over 12 months. Just because this is appearing at number 9 it does not mean that its less important. This a key starting point if you want to be debt free.
10. Find free entertainment.
Taking the kids to the park, going for a walk will cost you nothing. Freeze the entertainment costs. Ditch expensive entertainment activities for a while.
What other ways can one use to get out of debt?