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New Year 2020 and beyond

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Photo by Helloquence on Unsplash
http://Photo by Helloquence on Unsplash
My New Year Resolution is to get out of debt

New Year Resolution

I don’t normally make a New Year Resolution (the Jewish New Year has come and gone); however, for 2020 I have made a massive resolution for the next decade.


I did really well in 2019 to pay off my store cards and then when they were paid off I went right back to using them!

I am not alone in my debt and neither are you! On the 30/12/2019 Eye Witness News published an article that stated that ‘40% of South Africans who are in debt are struggling to make their monthly payments’.

Paul Sloan of The Debt Counselling Association of South Africa says that there were many people who had more than 8 loans.

He says that if you are using more than 35% of your income to repay loans, you need to ask yourself why? Too many South African’s are starting the New Year in debt.

To read the full article go to, https://ewn.co.za/2019/12/30/concerns-raised-over-sa-consumer-debt/

From debt to riches

A while ago I wrote an article about a book I read by Phumzile Ndumo called “From Debt to Riches”. I used the book as a reference for articles in a series about debt.

Phumelele Ndumo of ThuthukaSA
Phumelele Nduma of ThuthukaSA

I am pleased and honoured that I will now be working with this lady to get out of debt! You can follow my journey in a few places. On Facebook,  by joining either my group, https://www.facebook.com/groups/iamdebtfree/, or Phumzile’s group ThuthukaSA or both. You can also catch the videos by subscribing to my YouTube channel https://www.youtube.com/channel/UCdmweNFIDVH2pg-d8S1J2Yw.


If you feel so inclined, why not join along with me? It is a journey that will be difficult, I know. Old habits are hard to break! It is going to take more than just a New Year Resolution; it is going to take a commitment from not only me but my entire family as well.

How did we start and how do you start?

The first thing I had to do was sit down and list all my debt to the last cent. I have discovered that I am one of those people who have over 8 debts. I missed two during my initial homework phase and only saw them when I printed out my bank statements. Due to unforeseen circumstances, I did have to take out loans from the bank during the year!

New Year 2020 and beyond 1
Cut up your cards today

Then I had to look at each debt and work out in what order I would be paying them off. I also had to cut up my cards so that the temptation to use them in an ‘emergency’ could not happen. This is what happened to me when I paid off my store cards previously.

I did change my Woolworths store card to a Reward card only. I have kept my Edgars card and asked that they freeze the account until it is paid off.

Edgars was a little difficult to get hold of because they are very automated and human interaction is not available. I had to write an email eventually. The reason that I have kept my Edgars card is that we are a family who all wear glasses and we are only on a hospital plan. Certain optometric practices allow you to use your card to pay for glasses.

To avoid the temptation of using my card for other purchases I have given it to my mom to lock in her safe.

The truth!

My debts are costing me nearly R8000 per month in repayments. I had forgotten to take into account that over the years my credit limit on the credit cards has increased, so my credit card debt is actually over R 30 000 on each card.

While to some my debt may seem like a huge amount, to others it isn’t as bad as their debt. Each of us has to think in terms of what we earn and how much we owe.

It is different for all of us. A R40 000 debt for someone earning R5000 a month may take as long to pay off as someone with R 200 000 debt earning R 30 000 a month.

I will be using the debt snowball method to pay off the debts I owe.http://kasheringyourlife.co.za/snowballing-year-round/

I will be updating you via video each month on how my debt repayments are coming along.

Since recording the first video my husband has come on board and is committed to getting out of debt. I will not be sharing his information.

Steps to starting your debt-free journey

  1. Be honest about your debt, hiding it is what gets most people into trouble http://kasheringyourlife.co.za/where-did-the-money-go/
  2. If you can’t afford it don’t buy it. http://kasheringyourlife.co.za/10-things-about-budgets-and-debt/
  3. If possible, join with family/friends who are in a similar situation, the debt-free group is one of your friends’options, see links in the article.
  4. Do the homework!  Here are downloadable spreadsheets for you to use https://www.dropbox.com/s/z10grd5avbgc6o7/debt%20overview.xlsx?dl=0 and https://www.dropbox.com/s/9hmig5df7xdjszd/your%20debt%20payment%20plan.xlsx?dl=0, as well as a commitment contract with yourself to sign and to display as a reminder https://www.dropbox.com/s/nwcnjhxwibkcgjs/commitment%20certificate.docx?dl=0.
  5. Check and double-check that you have a record of all your debts, so that you don’t miss any.
  6. If your debt is more than 60% of your income, seriously consider debt review.http://kasheringyourlife.co.za/debt-counselling/
  7. Cut up those cards
  8. Be strong!
  9. If you can afford the book, I do recommend Phumzile’s book “From debt to riches” and also join her Facebook group ThuthukaSA, the link is in the article above
  10. Do not try keeping up with the Van der Merwe’s, they may be deeper in debt than you!

Welcome to my journey of the next 2 years. Watch my first session here https://youtu.be/_1vZUQDyiss

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