April 2025 Finance Newsletter: Defeat your Debt

South Africans are spending 72-79% of their income on debt – no wonder it’s one of the top causes of financial stress! For many, taking control of your debt or even becoming debt-free might seem impossible, but it’s more achievable than you think.

Your money move this month is to put steps in place to understand, manage and cope with your debt.

Top tip: Become more aware of the debt you have, the cost of lending and the positive benefits on your life when you manage debt better. 

Here are some questions to get you started:

• What is the reason behind your borrowing behaviour?

• Who are you borrowing from – regulated (follow rules) or unregulated (operate outside credit laws – high interest rates and risky) providers?

• What are the costs of lending? Interest rates, fees and more.

• What can you do to manage or fast-track your debt? What is the best solution for you to consider?

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Anna is a single mom who is battling to make ends meet and using loans to pay for necessities. She went from juggling retail and personal loans to accessing a payday loan and now finds herself in a spiral of too much debt.  She feels like she is barely surviving and finds herself feeling tearful and anxious.  A colleague suggested she meet with a financial coach, and now, with a debt solution in place, she is feeling hopeful and less alone.

Bongani met with a coach last year and has implemented the R200 plan. He is on the right track to pay off his debt. He has already closed two accounts and is motivated to be short-term debt-free within 6 months! He is steadily striving and making progress and feels confident about his financial future.

David is thriving – and while he has vehicle financing and a bond in place, he is coping with his debt repayments.  His goal is to settle his bond by the time he is 45 so he can focus more on his investments. He is also curious to know whether he can get a better interest rate on his bond and wants to explore how much he can save by paying extra into his bond account every month. He heard from a colleague that his financial coach has over 10 years of experience in home loan structuring and is excited about meeting with her to take his finances to the next level.

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Whether you are simply surviving, steadily striving, or totally thriving, with the right approach to match where you are on your financial journey, you can reduce debt-related stress and move to financial freedom. Help is at hand!

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Work out your debt-to-income ratio: