Three steps to getting debt behind you

Debt is so easy to get into and so very difficult to get out of. Prevention is always better than cure but the reality is that we get enticed into debt over time and soon find ourselves in it way too deep. The cost of debt climbs quickly and robs us of the potential to create wealth.

Institutions make their money by lending money to you at a rate over the time. You can benefit by reversing the formula. Interest + time = profit. You cannot reduce the interest rate but can reduce the time = less profit for institution.

Less interest for institution means more savings for you. More savings for you compounded over time = more wealth for you.

Here are 3 steps to getting ahead of your debt in 2016. A debt trap can be likened to trying to fill up a bath with the tap on but leaving the plug out.

Step one

Put the plug in by making a conscious decision to get out of debt. The culprits need to be identified and cannot be allowed to increase anymore. Credit cards, overdraft, personal loans, store accounts, outstanding taxes. All have to stop.

Step two

Open up the tap with your disposable income. This is the money that is left over after your cost of living during the month. You will have to draw up a budget on a sheet of paper detailing your expenses throughout the month. Focusing on living expenses, split them into ‘nice to haves’ and ‘must haves’. This is the hard work as you have to be brutally honest with yourself in identifying what you need and what you can do without.

Step three

Keep a close eye on the water level. Divert the new found savings back into paying off your debts. Targeting the highest interest bearing ones first and then working through the next. Patiently keeping your living expenses well under control. A new year brings on a wave of price hikes. So your cost of living will is going to increase anyway. Expect 2016 to be really tough. The cost of debt will probably increase as interest rates are on the rise. Debt is the enemy so you need will have to squeeze those living expenses even more now than ever before. Reducing debt saves you fortunes and only saving for yourself instead of paying the bank will put you on the road to financial freedom.

Weekend Breakfast's Sam and Africa had a conversation with Paul Roelofse. Listen below...


702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Capetonian tackles 3300km canoe trip to raise awareness for NGO

Capetonian tackles 3300km canoe trip to raise awareness for NGO

'I’ve always had that urge to do something no one has ever done before.' - Elizma Fuller

This is why the movie 'Wonder' can teach our kids a lot

This is why the movie 'Wonder' can teach our kids a lot

'It’s a really nice story about why you shouldn’t treat people differently because they look different.' - Gayle Edmunds.

[LISTEN] This had never been done before says Professor Clarke

[LISTEN] This had never been done before says Professor Clarke

Professor Ron Clarke hosted a press conference to reveal the recent excavation of the full skeleton of Little Foot which took 20 years.

[LISTEN] 'We are dealing with an outbreak of Listeriosis' - Dr Thomas

[LISTEN] 'We are dealing with an outbreak of Listeriosis' - Dr Thomas

Head of the Centre for Enteric Diseases at the NICD Dr Thomas says that Listeriosis is problematic because it isn’t notifiable.

[LISTEN] South Africans waste 10 million tons of food every year

[LISTEN] South Africans waste 10 million tons of food every year

Founder of Agricolleges Int. Howard Blight talks about ways to reconcile the gap between those that waste, & those who don't have.

Public plans to march in an effort  to save the lives of paramedics

Public plans to march in an effort to save the lives of paramedics

Parliament needs to deploy the SANDF to escort emergency vehicles in focused areas - Noel Desfontaines, General Sec for Hospersa

Popular articles
South Africans Doing Great Things |  Nkosinathi Nkomo

South Africans Doing Great Things | Nkosinathi Nkomo

Wasanga speaks to Co-founder of AquaRenu, Nkosinathi Nkomo about turning a problem into an opportunity.

Dr Mbuyiseni Ndlozi opens up about his thesis

Dr Mbuyiseni Ndlozi opens up about his thesis

Ndlozi explains the significance of the the first chapter of his thesis: 'Trauma in the archives'.

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

The Money Show’s Bruce Whitfield interviews Steinhoff International Chairperson Christo Wiese.

Is it normal to have a curved penis? Dr Shingai explains

Is it normal to have a curved penis? Dr Shingai explains

Urologist Dr Shingai Mutambirwa says penile curvature is only a concern if it impedes a man's ability to have penetrative sex.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Bruce Whitfield interviews the remarkable Wiese (net worth R100 billion!) about how it all began and where it’s going.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?