The Secret of the Rhino tells us to charge down our debt and keep it at a manageable level. This means that if you are going to have debt, you should stick to some rules.

Have a plan

Only borrow money or get credit if it is part of your financial plan.

Don’t miss payments
Make debt repayments part of your budget. Decide what you will sacrifice to make your repayments. Paying off your debt every month is not negotiable. We mentioned blacklisting and the negative consequences earlier.

Stay within your means

If you have to buy a car on credit or get a loan, make sure you can afford it and pay the biggest deposit you can. Cars lose their value quickly and you have other expenses so make sure you make sensible decisions – you can lose ZWL20 000 in value in the first minute you drive it out of the showroom. Consider saving for a larger deposit to ensure lower monthly premiums.

Don’t use Hire Purchase (HP) for smaller purchases

Don’t buy furniture and appliances on hire purchase. If you don’t have the money to buy it cash, save up until you can afford it.

Compare rates

Shop around for the best deals.

Consider needs versus wants

Resist adverts and marketing campaigns that encourage you to buy things you don’t need. Make a list of your needs and wants and keep track of your budget before you impulse buy.