Avoid “Fomo” and stay out of the debt ‘choke’

2019-01-17 06:01
John Manyike

John Manyike

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

The Intensive Care Unit or ICU in a hospital is synonymous with life and death, but for financial guru John Manyike, this has come to define the financial status of many debt-stricken South Africans, especially at this time of the year.

Manyike, who is head of financial education at Old Mutual, says many South Africans are financially in the ICU.

While there are many contributing factors, he says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors to work out a solution rather than avoiding them.

He adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking into debt.

“In the first quarter of the year, more South Africans enquire about credit assistance.

“A whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.”

This is as a result of more citizens getting in debt over the festive season, he adds.

During the interview, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behavioural change” is crucial.

“You cannot do things the same way and expect different results,” He cautioned.

Calling for a “robust collaboration” between government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans, he said this will create a vibrant and debt-free society.

He apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed, a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

“The only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

“South Africans have to get into the habit of saving. Another way of getting out of debt is debt consolidation. But this is a last resort. Among other things, indebted South Africans should first look at rearranging their lifestyle.

“Things such as packing a lunch box instead of R50 or more for lunch daily are a first step towards(debt) recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period,” he warned.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly phone contract.

“You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting into debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation. This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have.

He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts.

He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season.

In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial. “You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone. “You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation. This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt. He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018. This, according to Manyike, is as a result of more citizens getting in debt over the festive season. In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt. However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned. He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation. “The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone.

“You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation. This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season.

In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone.

“You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation.

This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU.

While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season.

In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone.

“You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation.

This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed.

“Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt. He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season. In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt. However, for those options to succeed, “behaviour change” is crucial. “You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education. “Advertisement influences behaviour,” he said, calling for more financial education in the media.While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation. The main challenge in managing debt is that we don’t have a vision,” he said.He said the only time citizens get the vision to save some money is when they plan to buy a car or a house. “They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle. He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone. “You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”. “People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them. Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season. In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house. They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone. “You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season.

In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone.

“You will find that you save a lot of money by making those little changes,” he said.

He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation.

This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them. Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season. In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society. Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education. “Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation. “The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone.

“You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation. This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts. He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

The intensive care unit (ICU) is a hospital section synonymous with life and death, but for financial guru John Manyike this applies to many debt-stricken South Africans, especially at this time of the year.

Head of financial education at Old Mutual, Manyike says many South Africans are financially in the ICU. While there are many contributing factors, Manyike says end-of-year festivities also play a crucial role. With a lot of unwise and extravagant spending over December, he says this is the time for debt-ridden consumers to conduct a financial introspection to avoid sinking further into debt.

He says the best option is to sit down with creditors and work out a solution rather than avoiding them.

Manyike adds that the country has a population of 16 million “economically active” citizens, but more and more South Africans are sinking in debt.

He says in the first quarter of the year, more South Africans enquire about credit assistance. He adds that a whopping 25 million South Africans enquired for credit assistance in the first quarter of 2018.

This, according to Manyike, is as a result of more citizens getting in debt over the festive season.

In an interview with People’s Post, Manyike said there are limited options when it comes to getting out of the debt.

However, for those options to succeed, “behaviour change” is crucial.

“You cannot do things the same way and expect different results,” Manyike cautioned.

He called for a “robust collaboration” from government, the private sector and various stakeholders to eradicate the scourge of indebtedness among South Africans and to create a vibrant and a debt-free society.

Manyike apportioned some of the blame to “powerful advertisers” and a lack of “noise” around good financial education.

“Advertisement influences behaviour,” he said, calling for more financial education in the media.

While one of the ways to get out of debt is to set tangible goals and resolutions, he said for that to succeed a lot needs to be done.

Manyike urged South Africans to be “emotionally attached” to their new year’s resolutions in order to build a financially sound nation.

“The main challenge in managing debt is that we don’t have a vision,” he said.

He said the only time citizens get the vision to save some money is when they plan to buy a car or a house.

“They put together a plan and start saving money,” he said. “But that is not always successful. Sometimes they start dipping into that saving.”

Manyike encouraged South Africans to get into the habit of saving.

Another way of getting out of debt is to resort to debt consolidation. But this is the last resort. Among other things, Manyike said indebted South Africans should first look at rearranging their lifestyle.

He said things such as packing a lunchbox instead of R50 or more for lunch daily are a first step towards recovery. A daily allowance of R50 amounts to R1000 a month and about R12 000 a year and R120 000 over a 10-year period, warned Manyike.

He added that getting rid of a gym membership that one does not use is another alternative, along with reducing a costly contract phone.

“You will find that you save a lot of money by making those little changes,” he said. He also cautioned against the type of friends a person has and the non-payment of debts during the festive period.

He said the festive season is preceded by the Black Friday phenomenon, where people start getting in debt as a result of ‘fomo’ (fear of missing out). He also warned “pay-day millionaires”.

“People say they are rewarding themselves on pay day. What are you rewarding yourself for?” he asked. “What we need is to interrogate how we use our money.”

Manyike added that due to reckless spending and failure to plan, most South Africans get into debt and ultimately resort to debt consolidation. This means all their debts are settled by a recognised financial institution and the person pays one instalment instead of paying different creditors.

Manyike said this requires a lot of discipline. “You cannot consolidate consolidation,” he warned.

Manyike said consumers should try to avoid getting into debt by not using money they do not have. He said levels of indebtedness differ, with some people spending between 70% and 80% of their salaries servicing their debts.

He cautioned people to strive not to get listed. “Once you get listed you cannot get any credit until you are clear of debt,” said Manyike.

NEXT ON NEWS24X

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
/News
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.