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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).
