Simple tips to beat debt trap

Although the South African economy is showing signs of recovery, many consumers are still caught in a debt trap and do not know their way out.

Managing executive at Absa Retail, Kim Royds, outlined some simple steps a consumer can take to manage his or her finances.

l Do not ignore your debt. Take action as soon as you start noticing that you do not have enough money to pay your debt.

l Limit your spending to essential expenditure and do not create new debt.

l Be disciplined and do not avoid paying expenses such as your house. Rather sacrifice on luxuries.

l Monitor all your expenses by drawing up a monthly budget with a detailed outline of your income and expenses.

l Allocate funds for all your financial commitments and follow through, paying on time.

lCall your credit lender to find out how they can help ease your financial burden.