By Wikus Olivier, debt expert at DebtSafe

Debt is an issue that most South Africans unfortunately find themselves facing for most of their adult lives. Every individual deals with different forms and scales of debt, but for some, their debt spirals out of control. This is when a professional debt review service, such as DebtSafe, comes into play. These services are available to assist with managing and settling any debt scenario as well educating individuals on how to assess their specific circumstances.

There are a number of steps that South Africans can take to begin managing their own debt and find ways of understanding the process of dealing with their debt head-on.

Here are some useful tips when managing debt:

Accept your situation

Often, we know that we are in debt, yet we continue to spend recklessly, thinking we have everything under control. Taking a step back and examining the reality of what we are faced with can be a sobering experience. As the adage goes, acceptance is the first step towards recovery.

Get the big picture

Once you have come to terms with your financial situation, it is important to access all of your financial documents, agreements, accounts etc., so that you have a clearer understanding of what it is that you owe and to whom. Writing it all out and adding the figures will also aid in breaking the process down and making it more understandable. You can start by downloading your credit report from all three major credit bureaus. You will have to pay a fee to download your report but it will give you a clear picture of what your “credit reputation” is. Remember that in order to manage something effectively, you have to be able to measure it.

Make a change

Now that you have evaluated your situation, you need to decide how you will go about changing your circumstances. Create or rework your budget, trim unnecessary expenses altogether from spending, research cheaper alternatives to existing costs, and start gaining more control of your finances. It is here where you need to get creative and have the discipline to follow through on your financial plan. It’s not going to be easy, but it’s going to be worthwhile.

Cut off loose ends

First start by bringing any arrear amounts on your debt up to date. Keeping those accounts in arrears will make it difficult for you to make any type of progress. It’s also important to then begin settling debts as soon as possible, no matter how big or small. It’s often wise to settle all of the smaller debts first. These amounts quickly add up, and can go a long way to reducing pressure and the perceived scale of debt, which can often seem overwhelming. If you are able to settle a debt, irrespective of how big the balance is, it will have a very positive impact on your emotional commitment to get your debt sorted out. Once a start is made, and each step completed, the process gets easier. Having the discipline to carry on month after month is what will bring the breakthrough in the end.

Speak to a professional

If you are able to speak to a professional, it’s a good idea to take your reworked plan to an expert of your choice and gain their advice. Getting a second opinion can be really helpful, and can give you a different perspective on things. If you’re experiencing severe emotional distress due to your financial problems, it may also be advisable to seek the guidance of a psychologist or life coach.

Regardless of the level of debt that you’re facing, it’s never too late to get on the correct path to changing your situation. Choosing to follow these simple and practical steps can assist you in beginning your journey to a debt-free future.