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Follow on Google News | DebtSafe warns consumers to start saving up!By: DebtSafe DebtSafe (http://pr.debtsafe.co.za/) The Company ran a survey in the first quarter of this year, and it showed that an astonishing 51% of respondents couldn’t make debt repayments. “This has a snowball effect on all other facets of financial management issues, because people have to juggle money around just to get debtors from issuing summonses for back-payments,” DebtSafe management believes that one of the major causes of people being unable to make debt repayments is the fact that salaries are not increased according to cost of living. Olivier urges consumers to adjust to the reality of increased living expenses to be able to save money. In another DebtSafe survey, which ran in the second quarter of 2015 and asked individuals about their spending and savings habits, 39,4% respondents indicated that they are not able to save money at all after their expenses are paid every month. “Too many consumers use credit cards. They also lack the knowledge to manage debt; and this can keep credit card balances static, or worse, allow them to grow,” he continues. Olivier says that although the numbers look concerning, there is a light at the end of the debt tunnel. In the most recent DebtSafe survey, a surprising 91,7% of the respondents compare product prices before they buy something. Poor money management is still one of the other culprits of staying in debt. “A monthly spending plan is essential. Without one, you have no idea where your money is going, and believe me, when we assist our customers with their debt review process, we discover all types of unnecessary expenses such as high banking fees, luxury expenditures such as television subscriptions and gym memberships,” In the most recent survey, it was found that a concerning 45,8% of the participants have clothing accounts. How to solve the problem? “Don’t fall into the voucher trap which says that for every R800 you spend, you get R100 free when you open an account. This is the easiest way to get hooked into debt and the most difficult one to get out of,” warns Olivier. “At DebtSafe we help consumers with debt review and budgeting, but people must become credit savvy and only spend what they are able to AFTER all their monthly expenses are paid and AFTER a certain amount of money was put into a savings plan,” he says. And, while you and your spouse or partner might be talking about your family’s financial issues, try to involve your children as well, because they must also learn how to strategise and plan for their wealth in future. Financial mistakes are increasingly expensive and complicated to resolve. Get educated and get in control. But Olivier is positive about the change in consumers’ minds when they have gone through the debt review process. He says “Every day, people are making the decision to get out of debt and to change their lives by making certain important sacrifices. South Africans must wake up and practise healthy spending and saving habits.” End
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