How To Get Out Of Debt

You might not have had a wealthy, attractive Israeli diamond prince pressuring you to take out millions of rands in debts, but are you one of the millions of women in debt in South Africa? Join me, Kendall, on a journey towards financial freedom this year.

Have you, like me, driven past a massive billboard advertising debt collection services with your heart in your mouth, knowing that you are in too much debt to ever even consider leaving your full time job for the side hustle which you deeply want to pursue? After a disastrous contract with Telkom that never got cancelled and racked up a debt in my name, I’ve spent my early twenties feeling stuck in debt. My goal for 2022 is to start resolve my debt and living my life on my own terms. If you’d like to join me, I’m going to discuss from tips on break out of a debt spiral from author Sam Beckbessinger.

debt free pay debt
According to Joseph Phiri, certified financial planner at Alexander Forbes, South Africans are using about 75% of their take home pay for debt. Using this much of your pay to simply to covering interest makes it feel like you can never get out of debt… as you need debt just to be able to live.

 

So how do you get out of a debt spiral?

Start by recognising that debt isn’t a moral failing, or something that you should feel any shame for. Shame cripples you and holds you back from addressing your debt.

Next, build a DIY debt plan. What is a DIY debt plan? Well, a DIY debt plan is YOU taking control of your finances to understand exactly who you owe a debt to, what the interest is that you’re paying, and what the minimum monthly payment is. Often, we start paying our debt off on autopilot, but educating yourself, while a painful process, is a freeing one.

Especially if you are someone who loves to spend but hates to check your bank balance. Knowing how much you have informs you of how much you can or can’t spend. Managing your balance yourself empowers you to make conscious decisions as you spend or save.

Third, stop taking out more debt. Prioritise saving (if you can). Just not living on debt is a vital step to get yourself out of the debt rat race.

happy out of debt

Fourth, as part of your DIY debt plan, offload some of the work. Get in touch with a professional who can help. Debt counselling or debt review can help you protect your house or car from foreclosure and simplifies your debt repayments. Make sure to use a reputable debt company and be armed with your own information about what you owe, and what you need help with.

Fifth, try not to miss payments. If you decide to completely DIY the debt plan, negotiate with your creditors to ask for help. This is easier to do if you haven’t missed any payments yet.

Sixth, completely cut back on your lifestyle for a while. make note of where your money goes. Are these necessary or luxury expenses? Do you have a tendency to shop online when you are bored?

Sixth, and most difficult of all, is to stick to it. You can do it! If you need someone to keep you accountable, share your goals with a trusted friend to help you stay on track with your savings plan.   You know you want to be completely in charge of your finances and building your wealth instead of giving it away. Financial freedom is one of the most freeing things that any woman can achieve.

This article is the first of a series with writer Kendall Behr about attaining financial freedom in 2022. Join us as we explore getting out of debt, building an abundance mindset, and more.

kendall behr freelance writer

About Kendall:

Kendall is a freelance writer living in Pretoria, South Africa. Most of her work focuses on empowering women and demystifying topics like finances, tech, and social issues.

Connect with her on Twitter (@kendallbehr) or Instagram (@kendalldoesbooks).

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