Win financial planning worth R10 000!

Cash Strapped for Valentine’s Day? Bruce Fleming of CFP® offers financial advice on getting out of debt, plus you can win financal planning sessions worth R10 000!

For many people January is the longest month to get through financially because most people are paid early in December and have to wait until the end of January before they are paid again.

This last year was even more difficult as many people did not receive bonuses after a very tough financial year. This led to many cash strapped people maxing out their credit cards.

The problem with credit cards is that most of us feel like we are not using “real money” as cash is not physically leaving our current accounts or savings accounts, so the pain is not as acute.

Interest rates on credit cards are as high as 27%

Added to this there is the concept of we’ll pay it back when we can which leads us to the financial problem of credit cards being one of the most expensive ways of borrowing money with interest rates being as high as 27%.

As Valentine’s Day draws near, what can we do about our debt?

1. Adjust your budget

The silly season is now over, so record your expenditure and adjust your budget down by getting rid of all the unnecessary expenditure such as the nice to haves or going out for meals. This will give you a bigger surplus between income and expenditure to pay off your debt.

2. Pay off your expensive debt first

Credit cards generally give you 55 days interest free on your purchase. Pay off as much of this debt while you are still in the 55 days interest free period and avoid falling into the trap of only paying off the minimum you need to. Then pay off any balance as quickly as possible after the 55 interest free period.

3. Don’t continue using your credit card while you are paying it off. Pay for your purchases in cash

4. Don’t be late on payment any of your debt

Late payment fees not only add up but your bank may also increase your interest rate as a consequence.

5. Don’t borrow more money to pay off your debt

Avoid the risk of borrowing money to pay off the most urgent debt. It will just put you into an uncontrollable debt spiral.

6. Earn extra money

Probably the most difficult way to pay off debt is to take an extra job to pay off debt, but this may be your only option.

7. Be disciplined

Once you have started paying off your debt be disciplined. Carry on paying off your debt until
it is cleared and don’t get yourself back into the debt trap. This can be done by sticking to
your budget.

8. And of course, take time to smell the roses!

Win financial planning consultations worth R10 000!

Consolidated are offering one lucky winner the chance to have your own personal consultation with a financial planner to the value of R10 000.

This will include three initial sessions to evaluate and determine your lifestyle goals, evaluate your current financial budget, and map a plan for future orientated plans. The choice will then be yours whether you wish to make a change and start saving!

Click here to enter now and win your way to a better financial future!

Terms and Conditions
Closing date: This competition closes on 26 February 2010.
This prize will be awarded to a random entrant
Prizewinner should fall within PE, Cape Town, JHB, Pretoria or KwaZulu-Natal respectively as that is where there are offices to accommodate a winner.