Tricks To Help You Save While Paying Off Debt
3 quick tips to help you save.
When you’re paying off debt, help is available. Speaking with a financial consultant or planner about your situation and what is best for your individual and immediate needs is a good place to start. Begin by cutting back on small purchases like magazines and snacks at the grocery store. Consider selling some of those items you have been collecting for years but never use anymore.
Have some fun trying out some new recipes from some of those cookbooks you have piled up. Invite some friends over for some home-cooked dinners since cooking doesn’t have to be as stressful as it might seem with a few helpful tips. And remember: small steps can lead to big changes over time.
1. Have a payment method
If your goal is to pay off debt, you need a strategy that incorporates all or some of the methods below (there are no rules when it comes to getting out of debt).
For example, if your strategy for paying off debt includes the “highest interest rate method”, then this represents just one part of your comprehensive strategy that can include other methods like tackling smaller debts first, or taking on only the consumer debts you need to eliminate with whatever extra cash you have available at any point.
2. Get comfortable within your means
You need to determine how much you can save comfortably without interfering with your debt repayments.
For example, aim to save a maximum of R15 000 per year while continuing with your debt repayments at the same time. In the long run, you will provide yourself with financial security and reduce your chances of incurring more debts that you have to pay off afterwards.
3. Have faith, It’s not impossible.
Do you want to create a better future for yourself? Start small. Let’s say you only have R100 or R50 in your purse or wallet, but you haven’t had the chance to go grocery shopping. Don’t give up on saving altogether - rather spend that money on whatever your groceries happen to be for this one time, and then set aside the rest to save. Whether it’s tomato soup, milk or some veggies, spending that little bit of money can truly make a difference when trying to acquire an initial savings habit.
Whether you're trying to pay off your credit card debt, student loans, or any other type of debt, you probably know how hard it can be to make progress. A lot of the time, it feels like you're not making any headway at all. But there are some things you can do to make paying off your debt easier.
Credit Health can help you get started with a savings plan.