"First, repeat after me, 'If you spend more than what your income is, it is DEBT'.One of the biggest 'dangling little carrots' that retailers lay out for us is the ability to get into debt. Say for example, you have seen that singing fridge we mentioned earlier, but it is R12 000 and out of your price range. It is however, also available on credit for a period of 36 months. The new figure put in front of you is now a mere R456 per month, making your total paid back R15 960.
Scully comments, "You are being absolutely ripped off"." "Don't get me wrong, I am not against credit cards at all, I have one myself. It's the way credit cards are used. If you are using it every month and not paying it off, then you have a problem."Here are the three steps to getting rid of debt:
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"One of the ways around that," says Scully, "is to have an emergency fund, where you have money you can access, and it isn't expensive to pay back."And, how does Scully recommend avoiding debt altogether? "It's all about budgeting," she says.