5 Spending errors to watch out for

5 Spending errors to watch out for

As Debt Counsellors Credit Counselling, better known as Debt Counselling, we aim to help our client toward regaining their financial freedom. Here are a few spending mistakes that could leave you over-indebted in the future:

credit counselling

Spending Error #1: (Credit Counselling) Not living by a well balanced budget.

Credit Counselling, by living on a healthy budget you’ll be able to reach all of your financial obligations without stressing every time you swipe your card. Living on a budget doesn’t have to be a punishment. Budgeting can help you identify unnecessary expenses, save more and worry less. Don’t work harder – work smarter.

Spending Error #2: (Credit Counselling) Not saving for emergencies, retirement and education for your children.

These savings tie in with your monthly budget. Not saving for emergencies could ruin your entire budget. It’s important to save for expenses that happen unexpectedly. Create an account for each one of your children and start saving for their education as soon as possible. It is compulsory to put away a realistic amount for retirement every month. Start today! Saving is a lot less stressful than running out of money.

Spending Error #3: (Credit Counselling) Using credit without understanding how it works.

Some people don’t realize that products bought on credit could cost you more than twice the original price. It’s much smarted to save for the products you really need and to buy them once off. Make sure you understand how the interest rates work on the credit agreements that you enter. You might just realize that it isn’t worth the risk.

Spending Error #4: (Credit Counselling) Not checking your bank statements.

Going through ones bank statement once a month isn’t something that excites a lot of people. It could, however, mean the difference between a good and a bad financial month. It is very important to know about each and every debit order that goes off on your bank account. You could very well be paying for something that isn’t yours. Acquaint yourself with the cost of transaction fees on your bank account. You could save money just by moving debit orders to accounts that charge less, knowing whether to swipe or draw and making payments from the right accounts.

Spending Error #5: (Credit Counselling) Falling behind on payments.

The moment you fall behind on payments, you are at risk of becoming over-indebted. Each month the amount of debt that needs to be repaid will become even larger and eventually unattainable. This will leave you with huge amounts of debt that just keeps piling up.
Luckily Debt Review is available for people just like you! If you are reading this blog, chances are you’re having some difficulty covering all of your debt payments each month. With Debt Review, we can reduce your installments, protect you against legal action from Credit Providers and leave you stress free.

Contact us if you would like to find out more about the (Credit Counselling) Debt Counselling Process. Visit The National Consumer Tribunal for more Information..

Call: 013 753 3228

E-mail: magda@debtfreeplus.co.za

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