Die Burger Leefstyl - May 2010

Many of us are struggling just to get through each day. With taking and fetching kids from school, being dutiful employees, seeing that the family is fed, clothed and housed are just some of the things that ordinary South Africans have to contend with on a daily basis.But the pressures of money, coupled with the responsibility of family and children and every other responsibility we seem to shoulder, just seems to becoming too much for the average person to bear.

During the recession, nearly a million jobs were lost – and many who were in that unfortunate position, have not managed to find employment again. This leaves many people as sole breadwinners in households, and in todays economic climate, this is an uphill battle. Not to say that two – income homes are in the clear – far from it! The recession and global economic downturn has taken its financial and emotional toll on everyone. Many people are now having to deal with the unpleasant realities of summonses and repossessions. These experiences are traumatic and very overwhelming to the ordinary person.

Even with the countrys economic situation, many people feel like failures because they messed up their finances. With this comes great feelings of despondency and anxiety and throwing in the towel just seems like the most appealing, if not the only option. Firstly, do not feel alone in this. There are more than 8 million people who have impaired credit records. Secondly, change your mindset and start looking for solutions for your financial problems, as opposed to only seeing the problems. Changing your mindset is your biggest step towards recovery from any bad situation.

Also know, that living from pay cheque to pay cheque is not a sign of financial well being. By paying the minimum payments only each month – not only are you lengthening the overall term of the repayments, but you are also paying huge amounts of interest. And if there is a rise of one or two percentage points in interest rates, everything can come tumbling down very quickly! So before things go all askew, start making small changes in your life. The importance of saving cannot be over – emphasized. And I know for those just struggling to pay the necessities at the moment, the idea of saving seems very far fetched, but make the effort. Even if its just a small amount you put aside for when emergencies arise – do it. Try and make it the first thing you do when you receive money.

Work on your spending habits and plan your spending. Unless you have planned a purchase in particular, try to leave your credit card at home. How many purchases do we make simply because we had the credit card on hand to swipe? Simplify things in your life, not only with your finances, but in every other aspect to. If you learn to differentiate between what you really need and what you really want – making the decision should be easy when the time comes.

If you identify your burdens and prioritise the tasks you need to perform to lighten your load – half the work is done! Become aware of people and structures put in place to assist you in dealing with your problems. On the financial side, make a list of the contact details of financial institutions which can be of assistance to you. These being the National Credit regulator ( NCR ) your banks, registered debt counsellors and the Ombudsman for various sectors.

We all know the effects of procrastination, taking on too many things at one time, overspending , working towards unrealistic goals….and just stress in general. It can wind up taking a  serious physical and mental toll on you. And nothing is worth that. So, take things slow, prioritise and become educated and informed about your finances and other things which may lighten your everyday burdens. You’re worth it!

Moeshfieka Botha is Media and Communications manager of Credit Matters, the largest Debt Counselling firm in South Africa. She is also  a debt expert on Women24. For more information, visit www.creditmatters.co.za, call 086 111 6197 or email her at info@creditmatters.co.za