How can I stick within my monthly budget?

At DebtBusters, we understand how important it is to keep your credit history clean, especially if you’re planning on making significant purchases, such as a home, in the future.

FAQ: A South African consumer approached DebtBusters with the following budget related question:

I am earning a good income, but I am struggling to make ends meet and always spend out of my budget. Can you please advise on how I can sort out my debts and still stick within my budget? I do not want to impair my credit history, as I would like to purchase a house one day in the near future.

Poor money management can quickly lead to financial distress and accumulating more debt, which can take a toll on your financial health. That’s why it’s critical to put effective money management strategies in place as soon as possible. 

Here are some practical tips that can help you stick to your budget and regain control of your finances:

1. Draw up a new adjusted, monthly budget

If you’re consistently overspending, it’s time to take a close look at where your money is going. Start by creating a realistic and comprehensive budget. Track all your sources of income and categorise your expenses into needs and wants. Ensure that your essential expenses, such as rent, groceries, and utilities, are prioritised.

A good rule of thumb is to cut back on non-essential spending until your debt is manageable. Regularly review and adjust your budget to reflect any changes in your financial situation, ensuring that you remain within your means.

2. Develop a payment plan

Prioritise your debt. 

Prioritising your debt repayments is essential for long-term financial health. Not all debts are equal—some carry higher interest rates and need immediate attention. Focus on paying off high-interest debts first while making minimum payments on others to prevent them from growing.

A common mistake is neglecting smaller debts. Left unchecked, these can accumulate interest and become burdensome. By paying off smaller debts quickly, you can free up cash to address larger financial obligations.

3. Maximise your income

Are you utilising all the benefits your employer offers? This is an often overlooked way to supplement your income. Investigate whether you’re receiving everything you’re entitled to, such as medical aid contributions or pension fund benefits.

If possible, consider taking on a second source of income. Options could include freelance work, renting out a room in your home, or asking older children in the household to contribute financially.

4. Seek professional assistance 

If your financial situation feels unmanageable, don’t wait until it spirals out of control. Debt counselling could be the structured solution you need to regain financial stability. At DebtBusters, our debt counselling services are designed to assist consumers in reducing their debt while also helping to improve their overall financial wellness.

Our team of expert financial consultants will assess your financial situation and create a tailored repayment plan, helping you stick to a realistic budget. More importantly, debt counselling offers a legal framework that protects you from creditors and enables you to rebuild your financial future.

Take control of your debt with DebtBusters

Acknowledge the financial situation you’re in and take the necessary steps to resolve it. Being 100% honest about your level of debt is crucial to finding a long-term solution. Avoid taking out new credit, as this will only worsen your financial situation.

DebtBusters is South Africa’s leading debt management company, with a track record of successfully helping thousands of consumers achieve financial freedom. Whether you need assistance with debt counselling, debt consolidation, or restructuring your finances, we are here to help.

Take the first step today:

When facing financial difficulties, the first step is to acknowledge how much debt you have accrued and that you are in need of assistance. As you can see, you have already taken the first step to amending your financial circumstances for the better.

You must be 100% honest about how much debt you are in and confide in someone who you can trust. Remember, you must not take out any further credit. This will be detrimental to your financial health.

DebtBusters, South Africa’s largest and leading debt management company, has expert financial consultants that will conduct an assessment on your financial situation, draw up an affordable monthly budget and provide you with professional advice adequate for sorting out your debt.

Contact DebtBusters today on 086 999 0606, to find out more information on how to stick within your monthly budget, debt counselling and debt consolidation.