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South Africans are still not coming to terms with their finances and how to better use financial instruments, this has landed them so deep in debt that most of them have no idea how to get out of it, forcing the most desperate to sell their cars.

When faced with this sort of crisis and let’s not underplay this, it can be a crisis. The first step you can and should take when you find yourself drowning in debt is to contact a debt counsellor to get a free credit report and find out what your options are.

Many South African’s do not seek out debt advice out of embarrassment, pride or they did not know these facilities existed, how to use them, find them or make contact with them, that’s, why we at DC Debt Clear (Pty) LTd we are constantly trying to reach out to South African‘s in need of our services.

Tough times ahead

The past five to ten years, rising food and petrol prices, a weakened rand and rising interest rates have already hit consumers’ pockets so hard that entering into a personal loan agreement has become a commonplace solution to making ends meet. Unfortunately, this has led to a crippling debt spiral as you’re only servicing debt by creating more debt instead of trying to get out of debt completely.

How badly in debt is the South African consumer?

A recent World Bank index has shown that SA is one of the most indebted countries in the world.According to the National Credit Regulator (NCR), South African consumers are R1.66 trillion in debt, owing an average of R274 000 to creditors

A large proportion of consumers’ debt comes in the form of mortgages, vehicle repayments, clothing accounts as well as secured and unsecured credit facilities.The NCR’s latest quarterly report shows that about 25 million people have active credit records. However, a staggering 10 million have impaired credit records.

The regulator also indicated that consumers who are over-indebted tend to miss repayments primarily because they underestimate the cost of missing payments.

Cars being sold to service debt at an alarming rate

The NCR raised the alarm over the rising number of consumers who pawn their motor vehicles in order to obtain loans. Nthupang Magolego, a senior legal adviser at the NCR, said although pawning of assets for loans is allowed under the National Credit Act (NCA), the regulator cautioned against consumers pawning their motor vehicles.

She said the risk was high for consumers to lose their vehicles to pawnbrokers if they are unable to repay the loans within the agreed time.“Pawning assets for loans should ideally be used for small amounts of loans, where small assets such as cell phones, laptops or similar assets are pawned,” advised Magolego.

While if you’re looking to pawn off larger items you’re in serious trouble and need professional assistance to get yourself on the path to becoming debt free.

How to protect my vehicle from debt

It’s difficult to remember how we got into debt in the first place and the reality is that it feels virtually impossible to get out of it and before things get too bad.

If you’re stuck in a debt trap you should follow these steps:

1. Admit you have a problem with debt
2. Confirm this by finding out your status: Get a credit report.
3. Spend less than you earn.
4. Look at how much your debts are costing you and make a plan to pay off the most expensive ones first.
5. Don’t take out debt. Rather save to buy things and don’t use credit.
6. Don’t only focus on your debt; instead try reducing your expenses such as your insurance, etc
7. Speak to a debt counsellor about debt review

Manage your debt effectively

If you’re feeling overwhelmed by your current financial situation, feel free to contact us. Our professional DC Debt Clear Debt Counsellor will help you stay on track with your debt repayments through a quick and affordable debt assessment process, if you are in need of greater help he will introduce you to the Debt Review Process. All of our debt counsellors are registered with the National Credit Regulator (NCR). Visit our page at www.dcdebtclear.co.za for more assistance.

Even if you’re not within the boundaries of the Western Cape conserving water should become a habit, not only for this generation but for generations to come.

So how can you save water around your home? Here are a few helpful tips and practices.

Shower, and do it quickly.

You can use less water if you choose to shower instead of bathing. And reducing the time you spend in your shower – aim for 2 minutes – will save a significant amount of water, and hence reduce your water bill, each month.

Buckets are handy things

Buckets can be used in various wonderful ways to save water. For example, put a large bucket in front of you as you shower so that all the water that bounces off your body can be recycled. Some handy uses for this water you’ve saved would be to fill up your toilet cistern after flushing, or watering your plants. Another example is placing the container into your kitchen sink in washing your dishes in or rinsing fruit and vegetables. Instead of letting it all go down the drain, the water can be used for other purposes.

Turn off the tap

when you brush your teeth – this can save 6 litres of water per minute.

Use a cistern displacement device

Place a cistern displacement device in your toilet cistern to reduce the volume of water used in each flush. You can get one of these from your water provider.

Do your washing fully loaded

Always use full loads in your washing machine and dishwasher – this cuts out unnecessary washes in between.

Fix all leaks

Fix a dripping tap. A dripping tap can waste 15 litres of water a day, or 5,500 litres of water a year.

Capture grey water

Install a water butt to your drainpipe and use the water collected to water your plants, clean your car and wash your windows.
Water your garden with a watering can rather than a hosepipe.

Don’t use the hosepipe

A hosepipe uses 1,000 litres of water an hour. Mulching your plants (with bark chippings, heavy compost or straw) and watering in the early morning and late afternoon will reduce evaporation and also save water.

Install a borehole

If you’re lucky enough to live in an area with high-quality borehole water it is a great investment and resource to take advantage of especially for those with gardens and pools. It also helps alleviate the strain on municipal water and many municipalities are encouraging homeowners to drill boreholes on their properties to tap into underground water supplies.

Optimise your water consumption

Invest in water-efficient goods when you need to replace household products. You can now buy water-efficient showerheads, taps, toilets, washing machines, dishwashers and many other water-saving products.

Stop wasting water

Some habits deserve to die – not only are they useless, but they are also wasteful. Don’t leave your tap on while brushing your teeth or washing your dishes, fix your dripping taps, as these can waste many litres of water per day and don’t spend too much time washing your hands. Avoid flushing the toilet every time you use it: as the old cliché goes: if it’s yellow, let it mellow…

These are just a few suggestions, but there are many more simple ways to save water around the house. The trick to becoming a water-saver is simply to become water-conscious. Think about what you’re doing and ask yourself: is this necessary? And if so, can I do it in a more water-conserving way?

Don’t let your finances dry up

If you’re feeling overwhelmed by your current financial situation, feel free to contact us. Our professional DC Debt Clear Debt Counsellor will help you stay on track with your debt repayments through a quick and affordable debt assessment process, if you are in need of greater help he will introduce you to the Debt Review Process. All of our debt counsellors are registered with the National Credit Regulator (NCR). Visit our page at www.dcdebtclear.co.za for more assistance.

Electricity prices are always on the rise and utility bills are getting ugly with Eskom not being the most reliable service provider along with more people being added to the grid every year the pressure on the South African infrastructure is high. To keep up with demand costs will be incurred by the consumer so conserving on electricity is not just smart for your pocket but for the country as a whole. So how do you conserve electricity? Use the following tips and reduce your electrical bill by up to 40 percent.

Use Hot water sparingly

• Turn down the thermostat on your electrical element geyser to 60°C
• Don’t use hot water for tasks you can accomplish with cold water – such as rinsing dishes and vegetables
• Only use hot water for cleaning tasks that really need it, like washing dirty dishes with fatty stains and resedue
• Look at installing a better hot water management system

Fridge freezer

• Set your fridge to 3°C – any lower and it will use more electricity than necessary
• Make sure the seals on your fridge and freezer doors are intact
• Don’t open the door unnecessarily
• Place your fridge somewhere cool – away from sun-facing walls and windows, and as far as possible from the stove
• Defrost your chest freezer twice a year; upright freezers should be defrosted three times a year
• Don’t overfill your fridge or freezer; only use 90% of its capacity

Living rooms and bedrooms

• Always switch off lights in unoccupied rooms
• Unplug all appliances you are not using
• Don’t leave computers, TVs, DVD players, iPads and cell phones on standby – if you do, these appliances use up to 15% of the power they normally use
• Keep curtains and blinds open during the day to optimise natural light and postpone switching on artificial lighting until it gets dark

In the kitchen

• Replace your iron with an energy efficient, thermostatically-controlled model.
• Replace the seals of your fridge and freezer doors if they are worn or damaged.
• Invest in a Wonderbag, a simple heat retention cooker that uses no electricity.
• Replace Install water flow restrictors on your taps to reduce the amount of hot water you use; they will assist to reduce the amount of cold water your geyser needs to reheat and, therefore, lower your geyser’s energy consumption.

In bathrooms

• Install energy and water saving showerheads; their flow rate is less than 10 litres per minute and will assist to reduce the amount of cold water your geyser needs to reheat.

In rooms throughout your home

• Replace incandescent lamps with energy saving CFLs (Compact Fluorescent Lamps) and LEDs (Light Emitting Diodes); do the same with your conventional downlights: CFLs use up to 75% less energy than incandescent lamps and last up to eight times longer.
• Invest LEDs are about 85% more energy efficient than conventional incandescent lamps and about 5% more efficient than CFLs.

Improve your electric element geyser performance

Install a geyser blanket and pipe insulation on the first 1.5 metres of water pipes to reduce heat loss; fit your geyser as close as possible to the points where you use hot water.

Fans and windows

• Invest in the ceiling or stand-alone fans to circulate cool air around your home; avoid switching on your air conditioner.
• Install shade awnings on the outside of windows facing the sun; they reduce radiant heat from entering your home.

Outside your home

• Invest in motion sensor lamps for security lighting rather than leaving conventional lights burning all night.
• Use solar powered garden lamps.
• Plant trees and shrubs in your garden to channel fresh air towards open windows – trees are ideal for creating shade and, if positioned appropriately, can assist in managing your home’s internal temperature and reducing cooling costs.
• Invest in a pool cover when your swim infrequently in summer – it will limit water loss and reduce the time your pool pump needs to run to keep the water clean.

Invest in green energy & energy optimization

• Small electricity smart investments will contribute to lowering your electricity bill while reducing demand pressure on the national power grid – importantly, it will help to keep the lights on.
• Replace your electrical element geyser with a solar water heating system or heat pump.
• Add solar panels and a battery storage connected to your current home system to augment your national grid support

Climate control and home insulation

• Installing ceiling insulation is the most important step for improving the energy efficiency of your home. During winter – approximately 40% of heat is lost through the roof if your home is not insulated
• Insulation makes a home up to 5% warmer in winter (and 10% cooler in summer)
• Insulation reduces – and postpones – the need to switch on space heaters and climate control systems
• Insulation contributes to lowering your electricity bill – an insulated and draught-proofed room requires 51% less energy to heat up

In the laundry and kitchen

• If your fridge, washing machine or dishwasher is more than 10 years old, replace it with a new one. Appliances become energy intensive over time, and newer models are designed to be energy efficient. Look for the ‘international efficiency label’ on products to ensure optimal energy efficiency
• Replace your conventional oven with an energy efficient convection oven
• Or, alternatively, install an induction stove; compatible with stainless steel, cast iron and enamel cookware, approximately 90% of energy generated is used for cooking, making an induction stove 25% more energy efficient than conventional stovetops

Changing winter habits

• Avoid using electricity-heavy ‘bar’ heaters – instead, use energy efficient space heaters or, even cheaper, delay switching them on and, instead, dress warmly, use a hot water bottle and cover your legs with a thick blanket whilst watching TV.
• Keep your under-floor heating switched off – hot air rises and heat dissipates quickly if a door or window is open. If you do switch it on, make sure it is switched off when you are warmly asleep in bed.
  Use boiling water to ‘reheat’ your hot water bottle when you switch off the TV and head to bed – switch off your electric blanket when you get into bed.
• Drink hot drinks and dress for the weather – an extra layer of clothing and a cosy blanket over your knees will help stay warm and postpone switching on a space heater.
• When you do switch on your space heater, heat only the room you are in – remember to close all doors and windows while the electric heater is on.
• Also, remember to seal gaps around windows and draught-proof wall cavities throughout your home in preparation for winter.

In terms of electricity usage, the term less is more is applicable … using less energy in your home means a lower electricity bill – and more money in your pocket at month end. So now that you know how to reduce your consumption which tips did you find most helpful? Are there any tips we may have missed? Let us know in the comments section below

Don’t let your electricity bill shock you

If you’re feeling overwhelmed by your current financial situation, feel free to contact us. To Speak to one our consultants about debt review. Our professional DC Debt Clear Debt Counsellor will help you stay on track with your debt repayments through a quick and affordable debt assessment process, if you are in need of greater help he will introduce you to the Debt Review Process. All of our debt counsellors are registered with the National Credit Regulator (NCR). Visit our page at www.dcdebtclear.co.za for more assistance.

When a recession hits everyone is affected, government, foreign investors, businesses and of course the consumer. Nearly every consumer will feel an impact from a recession. There has been no escaping. The root causes were universal and have a domino effect. Since a recession is an unavoidable occurrence when it does it, it’s important to prepare yourself and your family so you don’t end up losing assets in the process.

Here are the top 10 rules of engagement that will help you successfully navigate potential pitfalls and wait it out until the economy beings to pick up and revitalise itself.

1. Evaluate and eliminate excessive debt

If your income has dropped or is not keeping up with your growing expenses, you may not be able to service the debt you took on when your revenues were much higher. Any debt can be worked out review your secured debt, loans guaranteed by the administrations, mortgages, lines of credit, and even leases.

2. Downsize

If you haven’t already, start reducing monthly costs and overheads.

3. Track your finances daily — and start today

Install a key indicator system to track your household spending and have daily, weekly and monthly financial sheet issued. Use these indicators to focus on your most vulnerable spending areas and make sure your most important bases are covered.

4. Reduce inventories

Look for items that do not use, have multiples of or you can simply do without, they could be instant cash just laying around that could be used for more important things. Unlock this cash by selling these items, renting them out, or looking at co-ownership of certain assets.

5. Train and cross-train your family

Saving and reducing can’t be a one-man band, kids, your wife, your husband and other dependents will also have to follow suit in learning to live with reductions. Set the example and then drive it home so that there aren’t unnecessary leakages and manage expectations and frustrations thereof.

6. Review your spending regularly

Use the internet and focus on only necessary expenses, what may feel like a necessity now may not be one in a few months. Look at constantly refining your budget and cutting costs or migrating to cheaper alternatives.

7. Resist sales

Don’t give away your money, we know saving can be hard and the urge to spend especially when a good deal presents itself can be a painful exercise. If the sale is on necessities like food or toiletries it can be worth adjusting the budget however that new pair of shoes or handbag will have to be put on the backburner for now.

8. Expand your income

Look at other forms of income, can someone in your home get a job, can you add freelance work to your weekly workload, can you start a part time business, can you rent out a room or second home. These are all options you need to explore in the time of a recession

9. Seek out support

Look to friends and family and create support groups that help spread costs such as bulk buying grocery clubs, car pooling and look at smart ways to share expenses and draw extra savings.

10. Focus on quality

That’s what wins in the long run. Never forsake this principle, try to buy things that have the longevity of use and re-use. Don’t skimp on the price when it comes to certain items, it may cost you a fortune in the long run.

Don’t let the recession get you down

If you’re feeling overwhelmed by your current financial situation, feel free to contact us. To Speak to one our consultants about debt review contact us here.