Budgeting: Basic Principles for South Africans Under Debt Counselling

A working budget is the backbone of financial recovery. For those under debt counselling, a well-managed budget is especially essential. Here are seven basic principles to help you.

1. Understand Your Income

Establish a clear picture of your total monthly income to determine how much you can afford for debt repayments and savings after essential expenses.

2. List Monthly Expenses

Compile a comprehensive inventory of all monthly costs, including rent or bond payments, utilities, food, transport and other living expenses.

3. Prioritise Your Debt

Debt counselling helps identify which debts to address first, focusing on consolidating where possible and tackling higher interest rates initially.

4. Set Goals

Establish realistic and achievable financial targets, such as monthly savings amounts or debt repayment timelines.

5. Monitor and Review

Regularly adjust the budget as circumstances change, including income increases or unexpected expenses.

6. Consider Debt Consolidation

Consolidating multiple debts into a single loan may provide lower interest rates and a single manageable monthly payment.

7. Seek Help

If you struggle to maintain the budget or if debt problems persist, contact AfriSkuld. We are registered with the NCR (NCRDC3062) and ready to help you.