The National Credit Regulator (NCR) of South Africa, which instituted the
debt counseling programme, provides some sound advice for those who are over-indebted. Avoid accumulating more debt while also downgrading what you already have, as it could save you from being blacklisted and applying for
debt counseling.
Certain things can be cut out of your budget to save you more money each month, at least until your debt is paid off say the NCR. These expenses include your domestic worker, alcohol, cigarettes, entertainment, M-Net, DSTV, Holiday clubs.
Downgrading is also an option with your bigger expenses, such as your car. It may save you money to sell your expensive car and buy a cheaper more economical car. This will not only reduce your monthly installments but also your cost of petrol. The same is true for your house. Selling your house and getting a smaller place could help you pay off some larger debt.
A financial advisor may also help you to see where you can save money. If you can afford it, consult an advisor approved by the NCR. Any savings that make after shuffling your debt should be made to pay the most expensive debt. This would be debt with the most interest as these costs are reduced greatly with extra payments.