Give Me That Bill Mzansi: Is there a solution for your debt?

12 February 2015
Give Me That Bill Mzansi: Is there a solution for your debt? Image : 276

How easy is it to get yourself out of debt? The most basic way to solve debt and credit problems is by ensuring that you make more and spend less. Todd Tresidder (2013) tells us that tracing the problem of debt back to its’ roots simply works like this:

• Your money problems result from excessive spending or insufficient income.
• Excessive spending and insufficient income are caused by life habits.

He says that debt is basically a personal life problem (habits) masquerading as a financial problem (debt). And it is the emotional cause behind your debt that needs resolving in order to establish good ground for a permanent solution. This basically means that behaviour patterns that cause debt need to change if the problem is to go away. Getting out of debt is good but staying out of debt is what you really want!

What is important is for you to initially fix the cause of the debt before actually pursuing financial solutions. This also means that you need to be honest with yourself; clearly set apart your ‘wants’ from your needs and and budget accordingly.
If you know that you have to pay rent, you can’t allow yourself to spend the money allocated to that on buying clothes or partying with friends. You need to get your priorities straight. These are the “emotional causes” or “habits” that need to be dealt with in order to achieve financial success.

Below, Todd Tresidder (2013) identifies three steps that will help you repair and identify your budget leaks:

Step 1: Identify the Cause
You are the cause of your debt. More specifically, your debt is caused by your habits and attitudes that determine hundreds of daily financial decisions. Literally, you financial situation is a matter of habit.

Step 2: Implement the Cure

Once you’ve identified the habits that cause you to get into debt, the next step is to adopt new habits that move you toward wealth. With this step you literally engineer your life to create wealth one habit at a time. This means stopping all the slow leak habits and replacing them with wealth building alternatives.

Step 3: Treat the Symptom
Now that your financial life is positive cash flow, it is time to pay off all your debt in the most reliable, efficient way possible. This step is broken into three sub-steps to make it easy to complete.

1. Begin by organizing all your debts to minimize the monthly bleeding. Consider which refinancing strategies can help you lower interest costs and eliminate penalties and fees.
2. Sell your stuff for a quick payoff. Do you have jewelry, an extra car or some other item that you seldom use and can sell off? What things can you sell to make a quick dent in your debt and accelerate the payoff process?
3. Once your interest costs are minimized and quick payoff strategies are implemented, then organize your remaining debts and clear each one every month.
(blog.credit.com/credit.com News)

It’s not going to be easy but if you are to achieve financial freedom, you will have to spend cautiously and with absolute alertness to how much you are spending versus what you actually have or receive. In the meantime, GMTBMzansi is here to help you with some of those bills, so don’t despair!

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