CAPE TOWN – According to Stats SA, there were 18 491 civil judgements for debt in September 2018 amounting to R291.1 million. The largest contributor to these cases was for money lent, amounting to R81.7 million or 28.1 percent of the total debt cases for the month.
If you want to avoid being part of these statistics, then you will need to plan and budget very carefully to survive the seemingly endless month ahead.
“Following a month of holidays and lavish spending, January is often a tough month for most people. Especially if you received your December paycheque earlier than usual, your January pay cheque can seem just too far off to hold out for. However, building onto bad debt is not a way out, but rather a way into deeper levels of financial despair,” warns regional director and chief executive of RE/MAX of Southern Africa, Adrian Goslett.
As tempting as it is to use the “get out of jail free” card by reaching for your credit card to purchase the items you simply have no money left to afford, Goslett suggests that you get creative and go without certain things until your next paycheque.
“While there are certain fixed expenses you cannot avoid paying, such as your home loan instalments and insurance premiums, there are other household expenses you could put on hold for the month. For example, you could pause your DSTV or Netflix subscriptions. You could also pause any hired household services you might have, for example cleaning or garden services,” Goslett suggests.