Budgeting allows you to better understand your financial position or situation. It gives you insight on what you can and can’t afford, where you spend, how much you spend and on what. Similarly, how much you save.
Let’s use an example of Mr/S X:
Income (Net Monthly Salary)
R 3 000
R 4 000
Food, Toiletries, Petrol
R 5 000
You would therefore have saved R8 000 out of your income of R20 000.
Now that you know what you have left you are able to use this as you wish. A budget is very important as this is what will keep you aware of your spend patterns.
Assume now that the unforeseen has happened and you have had to spend all your savings on whatever that unforeseen event was. Your savings is at R0. You may perhaps still be short of money and this month you may foresee some challengers in making your monthly expected payments on your vehicle or home loan.
What do you do in this situation?
Contact the bank that wants to journey with you, in such instances we have a debt solutions team that can assist in providing you with the best possible solution. Ultimately, you have a choice on the solution offered to you.
What are these debt solutions and how can they help you?
The debt solution offering has short- and long-term solutions. Short term solutions refer to restructure of debt while long term solutions refer to consolidation. Every solution will therefore fit the unique circumstance and situation of the customer.
Solutions offered, differ based on circumstances and affordability.
Payment Arrangements, this is where an arrangement to pay off your debt over a period is agreed between yourself and the bank. This helps free up some cash which can then be used for your other financial commitments.
Respreads, if you are overdue by a small amount, contact us and we can possibly assist you in removing your arrears, adding it to your outstanding balance and extend your repayment term.
Suspension, is an option that freezes payment over a period of time allowing you to sort out your other credit commitments
Consolidation an option that enables you to combine various debts into a single manageable account. Instead of making payments on various accounts with various interest rates, why not pay a single amount at a single interest rate?
So how does this work?
There is a quick assessment that needs to be done based on a criteria, if you fit the criteria the following will need to happen