04 Jul July: The Month of Savings
July is Savings Month in South Africa. As declared by the Savings Institute of South Africa and no, that’s a made up institution. It has long been reported that South Africans are no good savers and this ties in with the debt management problems South Africans face. Let us explore the this tie and how South Africans can figure out ways to be better at savings
When someone is struggling to repay their debt obligations and cover their living expenses, the last thing they are thinking about is opening up space in their budget for monthly savings. Although it is always a good idea to have savings in case of unforeseen issue coming up, most people in South Africa will not have a contingency savings amount and would rather borrow via a payday loan or from a relative or friend. This will eventually put them into a debt trap
What people do not understand is that there are remedies for debt management issues out there that allow for them to reduce their monthly instalments and interest rates and ultimately lead to more space in their budgets for savings.
Debt rescue options such as debt consolidation and debt review work to assist someone alleviate the burden of paying back huge instalments.
By going under one of these debt remedy options you sort out the matter of your creditors always bothering you, ensure that all your debts obligations are paid, you get reduced interest rate and you still get to save for future expenses. Professionals such as debt counselors are legally obligated to work out a budget for when you have been accepted under debt review and an amount within your budget for “contingency” is allowed. This amount can be up to 5% of your net income. This is a savings mechanism within the debt management option of debt review.
Remember that you are not alone in the battle for financial freedom, millions of South Africans struggle to save and cover all their debt obligations on a month to month basis
Debt-Consolidation is a debt advisory platform intended to educate the masses about debt management.