Break down your debt into small portions

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
loading...
Loading, please wait...

Cape Town - Looking at your debt in its totality can be overwhelming, but when you break it down into small portions it becomes easier to manage.

Fin24 user Keano J shares how he allocates his budget to manage debt as well as making provision for rainy days. He writes:

Vehicle payments

Consider budgeting between 15% and 20% - try to never exceed 25% of your monthly earnings - for vehicle (including insurance and maintenance costs) and travelling (petrol) expenses.

As your salary increases, increase your car payments relatively and do the same with your bond(s). It reduces your term and will show significant positive interest gains in the long term.

Short-term debt

Manage one clothing account with a credit limit equal to one month’s disposable income; two credit cards (one with a credit limit of 50% of one month’s net salary and one emergency, with credit limit of one month’s net salary).

Read this for free
Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
16.32
+0.2%
Rand - Pound
19.77
+0.1%
Rand - Euro
17.03
+0.1%
Rand - Aus dollar
11.22
+0.0%
Rand - Yen
0.12
+0.5%
Gold
1,811.06
+0.1%
Silver
20.12
+0.7%
Palladium
1,934.00
0.0%
Platinum
887.00
0.0%
Brent Crude
111.63
+2.3%
Top 40
60,902
+2.1%
All Share
67,025
+2.0%
Resource 10
63,634
+3.8%
Industrial 25
81,244
+1.2%
Financial 15
14,837
+1.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot