ANYONE in debt, even if it is just a small debt, needs to manage it. Debt can become a serious problem when it gets out of control.
“Do not give up if you are struggling to manage your debt. There are always options available and people who can help you,” says Surihe Gaomas-Guchu, corporate communications manager at Standard Bank Namibia.
She says when dealing with debt, you need to understand how much you owe.
“Without an idea of the size of your debt, it is difficult to put together a plan of attack”, she noted.
Gaomas-Guchu provides the following tips and advice when it comes to dealing with your debt:
• Compile a budget, and live within your means;
• Pay your bills on time each month – you may be penalised for late payments;
• Make at least a minimum payment – it will help to keep your debt from growing;
• Work towards building an emergency fund which would cover at least six months’ living expenses;
• Inform your bank in advance when you realise that you would be unable to make a payment – they will provide advice on how to manage the debt;
• Consolidate your debt where possible – in this way, you will only have one creditor: the bank
• Pay off your high-interest debt first.
“The sooner you seek help and create an action plan, the sooner you can take back control of your finances,” advises Gaomas-Guchu.
