UNNECESSARY LOANS IN JANUARY
At the start of a brand new year many South Africans face a long wait for salaries at month-end and overspending during the festive season leads to borrowing to cover small shortfalls, which may quickly snowball into a bigger problem.
"This money could be used to save for your children's education, pay off your home loan quicker, or even treat yourself to something that month," says Sibiya.
One of the major problems is that people stop paying for policies and long-term investments in order to service their debt, and this impacts their financial future. If you have already taken out a loan or maxed out your credit cards and store cards to get through the month, there are ways to take back control of your finance sand enjoy a debt free year.
GETTING OUT OF DEBT
"Acknowledging that you are in debt makes it easier to address the problem," says Sibiya. "Firstly, you need to stop increasing your debt, which allows you to focus on paying off your current commitments.
"Secondly, plan and be responsible for your own finances. Write down every expense for the month, including groceries, clothing, electricity, rent or bond and credit card repayments."
Once this has been done you will quickly see that there is space to cut down on spending and clear your debt. Do you really need new clothes, or can you wait for a few months?
If you find yourself with major problems this early in the year, make small changes to your budget, spend less on unnecessary items and if need be, approach your bank to find a solution such as negotiating a longer payment term . They are there to help and they will advise on the best way to manage your finances so you don't have to stop paying towards savings and investments which are essential to your future.