Seven steps to get out of debt

Debt is addictive. And when you are in debt, you might not realise how deep you are unless you are totally overwhelmed and everyone is after your neck. Otherwise, you will keep on thinking, I will resolve this next month, and next month becomes next month.

Debt counsellor Anton van de Venter says it is easy to get out of debt.  He has prescribed seven  easy 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 much 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 too much anyway.

Step 4

Budget, budget, budget – talk to your family, get everyone on the same page, make SERIOUS cuts to your budget and stick to them. Turn off DSTV, no more maid, 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 orders fail, this just costs money. Nearly ALL creditors 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 the 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.

Can you swallow this? You have to if you want to get out of debt and start saving.

This except was reproduced with permission of the author for our book: How to buy a house for half the price.