Money management tips

by | May 13, 2022 | Personal Finance

Credit rejection rate reaches all- time high as SA battles Covid aftermath

More and more South Africans are feeling the pinch as the number of people getting rejected for loans, credit cards, and car and home finance increases to its highest level to date. This is according to the latest Consumer Credit Market Report, released by the National Credit Regulator (NCR). According to the report a total of 66.04% of South African consumers seeking credit are getting rejected. Also, applications for credit saw a 5.12% increase from 11.76 million to 12.36 million applications for the quarter.

The reality is, many South Africans are finding it hard to make ends meet, as the economies falters and the cost-of-living skyrockets. As families everywhere face dire financial strain, Founder and Debt Counsellor at National Debt Advisors, Sebastian Alexanderson advises consumers to adopt wise money habits to survive these tough economic times. He shared the following tips for changing your financial situation around while securing your family’s future.


Budgeting is bible.

The reason why budgeting will always be top of any financial advice given is because, without proper planning, no real change could ever happen. Contrary to popular belief, budgeting does not necessarily mean pinching every last penny. Once all your household expenses are covered and a savings fund is established, you are still free to spoil yourself as long as it is within reasonable bounds. The benefits of budgeting however are endless. Not only does it mentally prepare you for properly handling your finances, but it also ensures that you create and accomplish realistic financial goals for your family with a clear vision in place. By setting a budget and sticking to it, your family is able to fully understand their financial position so that they can avoid falling into over-indebtedness by spending more than is available.


Explore other options

Globally, economies are taking strain and the cost of household essentials are constantly on the rise. Even so however, you can save on your living expenses by switching things up here and there. For example, you could use a gas stove and switch to solar energy to save on electricity. You could also save by releasing your domestic or bringing them in twice weekly. Grow your own vegetable garden and cut your grocery budget significantly. Another option is to try some DIY around the house, like small décor projects and impromptu needlework whenever you can. You could also see if you can get a side hustle to supplement your basic income. However, be cautious not to opt for cheaper options, especially with big purchases. If the cheap price means that the quality will be compromised, you might end up having to spend more money on repairs and replacements in the long run.


Be sure to save

One of the biggest misconceptions about saving is that your savings is what is left after spending money on everything else. On the contrary though, savings should be regarded as part of your expense budget on a monthly basis. Once you have paid your monthly bills, you need to set aside a portion of your income, even if it is a small amount, for savings before you can do other things. Saving consistently will contribute substantially to your ability to support your family’s needs in the long run.


Get Insured

While most people often overlook them, insurance covers are arguably the most important items to always include in your monthly budget. Insuring your valuables, including your car, house, household items as well as your family’s health and future is by far the easiest way to ensure you never have to worry about money issues when unexpected life events happen. Car crashes, unforeseen illnesses, loss of income, and housebreakings, and even deaths are part of life, be ready for the worst by making sure you are covered for the unexpected.


Face your debt issue

Debt can be very overwhelming. Regardless of how it was accumulated, there comes a point where many consumers find themselves struggling to meet all their debt obligations while covering their monthly household expenses. If your heart anxiously skips a beat whenever your phone rings and you are having sleepless nights wondering how you could ever possibly get out of debt, trust me, it is not as bad as you think. As one of the leading debt counselling companies in the country we can help you effectively deal with your debt problem. Our highly skilled debt counsellors can, through the legal and regulated process of debt review, negotiate lower monthly installments with your creditors, leaving you with enough money to cover all your other monthly household expenses.

Contact us today, let us help you get your finances back on track.

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