All these lovely words to describe the mess most of the world is in.

* Don’t you love the way we have all been given a scapegoat for our problems?
* Who’s fault is it that we have crippling Credit Card debt, apparently not ours if we believe the news, it’s the banks fault, it’s a sub-prime bond problem, it’s the Americans?

But here is the problem, most of us made this debt long before the CREDIT CRUNCH, the crunch only made it impossible for us to pay for our credit.

If you are in debt stress, and you aren’t alone, about 17.6 Million South Africans are in the same boat, but here is some news for you - YOU are to blame, it is YOUR fault and only, YOU can fix it.

How, well don’t wait for the world’s economy to recover, this will not save you, you need to act now and act decisively!

Become Debt Free in 7 Steps:

Step 1

Act Now – talk to someone you can trust, be honest and tell them everything, this should probably be a Debt Counsellor but a knowledgeable friend or business colleague may also do.

Step 2

“It’s not how much money you make (or spend); it’s how you can keep.” says Robert Kiyosaki of, “Rich Dad, Poor Dad” fame. Often poor people do not carry happiness within themselves and depend on external sources for their happiness, buying to impress makes them feel good. Rule No. 1 – If you don’t need it to survive DO NOT BUY IT. (to survive is very different to, “nice to have”)

Step 3

Credit cards are the enemy – cut them up, lock them in a safe or give them to a trustworthy person – CARRY a DEBIT CARD. Now you can only spend money you have. If you run out – GO HUNGRY, most people eat to much anyway.

Step 4

Budget, budget, budget – talk to your family, get every one on the same page, make SERIOUS cuts to your budget and stick to them. Turn off DSTV, no more maid’s, cut your own grass, stop eating meat, stop smoking – get your children involved, you will be surprised how understanding and willing they are to help. Remember you are a family, they love you for you not for the TV!

Step 5

Call your creditors and discuss your situation with them, make arrangements, do not let debit order fail, this just costs money. Nearly ALL creditor will assist you, BUT you need to be persistent and give them honest and accurate information. Do not accept no for an answer, if they really can’t help you then speak to a Debt Counsellor, remember the National Credit Act can protect you in spite of what credit provider will tell you..

Step 6

Be patient, getting rid of all the debt that you’ve accumulated over the last 10 or 15 years can be a very slow process so don’t be discouraged it’s a process.

Step 7

Do not carry extra cash in your wallet, do not visit shopping malls – spend spare time outdoors with your children. Shopping Centres are much better at convincing you to spend money than you think – they are experts at getting you to part with your money.

Anton van de Venter
Debt Counsellor
Become Debt Free