While being debt-free may seem far-fetched, you can explore ways to free up additional cashflow – by applying good money management principles – while servicing your debts. Here's how.It’s almost a norm for many. The SMS from the bank comes in at midnight: “RXXX paid to your account.” But by the time you wake up to get ready for work in the morning, that salary has been whittled away by debit orders – and there are still loans to repay, bank charges and rent or the bond.
How does one free up cash flow in these kinds of circumstances where debt seems to leave very little wiggle room? Here are five things you can do if you’re struggling.When you switch your qualifying credit into a single agreement you could save on monthly credit service fees, according to Emma Mer, CEO of FNB Loans.“Your revised personalised interest rate might be lower than the interest on your previous repayments which can help you save on interest paid and in turn free up cashflow.
Having one less bottle of wine over the weekend will save you around R320 a month. And take lunch to work instead of buying food. If you can save R20 every day of the work week, you’ll be saving R400 a month.Put that any windfall you might get to good use by paying a little extra on debt such as your home loan, for instance, and that will reduce the monthly amount you’re paying on insurance products linked to your bond.