Starting the new year debt-free is an excellent goal that requires careful planning and
disciplined financial habits. Here are some steps to help you achieve a debt-free start to
the new year:
1) Access your current financial situation: Take stock of your current financial
status. Review your income, expenses, and outstanding debts. Understand the
full scope of your financial picture before making a plan.
2) Create a realistic budget: Develop a comprehensive budget that outlines your
monthly income and all your expenses. Categorize your spending into fixed
expenses (e.g., rent, utilities) and variable expenses (e.g. groceries,
entertainment). Be sure to allocate funds for savings and debt repayment.
3) Cut unnecessary expenses: Identify areas where you can cut back on non-
essential expenses. This may include dining out less, cancelling subscriptions
you don’t need, or finding more cost-effective alternatives for certain services.
4) Set financial goals: Establish clear and achievable financial goals for the year.
Define specific objectives, such as paying off credit card debt, building an
emergency fund, or saving for a particular expense.
5) Avoid new debt: Commit to avoiding new debt. Use cash or debit for purchases
instead of relying on credit cards. Think critically about whether a purchase is a
necessity or a discretionary expense.
6) Seek professional advice if needed: If your financial situation is complex or
challenging, consider seeking advice from a financial counselor or advisor. They
can provide tailored guidance to help you achieve your specific goals.
7) Contact DebtBuddy for assistance with debt counselling:
Email: free@debtbuddy.co.za
Call us: +27 86 155 5277
For more information : https://debtbuddy.co.za/