Six Steps Plan To Financial Freedom

GET TO KNOW YOUR CREDIT REPORT

• You are entitled to a FREE credit report from each of the four Major Credit Bureaus every year.
• Critically analyze the information on the credit report.
• Lodge a dispute for any incorrect info or unfair credit information.

DRAW UP A BUDGET

• Learn to live within your means.
• Work out exactly what you NEED.
• Identify unnecessary luxuries to cut out in order to pay off bad debt or pay debt quicker.

FACE ALL YOUR DEBTS

• List all your debts.
• Never run away from your creditors.
• Always communicate with your creditors and confirm in writing.
• Consider consolidating the debts into one loan.

WHEN YOU HAVE EXTRA INCOME

• Target your high interest-bearing debt and pay it faster.
• Pay more than the required monthly instalments and save on future interest that would have been charged by the creditor.
• Consider consolidating the debts into one loan.

WHEN YOUR FINANCES ARE TIGHT

• Identify opportunities to increase your income.
• Negotiate for lower instalments or
• Consider your legal options to protect you against legal actions such as approaching a debt counsellor for advice or assistance, debt review, administration or sequestration.

WHEN YOU DON’T HAVE AN INCOME

• Advise your creditors in writing that you are unemployed, follow up to make sure that they acknowledged (received) your communication.
• Try to find a part-time job while looking for a permanent job.
• Keep your creditors informed of any change of your details or circumstances.
• Understand that you will still receive communication from debt collectors as debts are not automatically written off due to unemployment.