Preventing Debt

How to reduce debt:

1. Chat to colleagues and try organise lift clubs.
2. Reuse fabric shopping bags for shopping.
3. Put energy saving light bulbs in your home.
4. Put a geyser blanket on your geyser.
5. Register with retailers like Woolworths; Exclusive books and Clicks that will send you news on sales and provide you with discounted coupons or cash back.
6. Plant a veggie and herb garden.
7. Rent play station games at video stores and if you do buy games look out for opportunities to swop games either with friends or some gaming stores.
8. If you have children give them empty toilet rolls, or 2 litre plastic soft drink bottles. Depending on their age they will find a use for them. Great musical instruments for toddlers and arts and crafts for older kids.
9. Ask friends and family for plant clippings that you can then nurture and plant in your garden.
10. Purchase generic medication and save. Ask your Doctor first.
11. Purchase hair clippers to cut your own hair or get someone to do it for you.
12. Reuse yoghurt, margarine or ice cream containers like Tupperware.
13. Robert Kiyosaki, author of Rich Dad, Poor Dad, the top selling finance book says he does not believe in savings, but in investing. And a top SA investment banker recently said: "cash is going to become an asset with a disappearing yield." So in other words, use a savings or fixed deposit account to build up capital to invest.
14. Victoria Beckham, a renowned style icon buys many of her clothes second hand or from flea markets, she says: "You can get some amazing vintage stuff there. That's often where I get inspiration for my designs."
15. Vogue magazine the world's top setter of style has started two new features: "More dash than cash" and "Vogue thrift chic." It is no longer cool to look expensive. Two of their 'thrift chic' tips: "Save on botox - cut a fringe" and "make your own popcorn, put it in paper grocery bags and take it to the cinema."
16. Contact your cell phone provider to check if you are on the best option or if you could save on the account.
17. Get Skype www.skype.com to cut down costs on business and private calls locally and globally - and you can use video for interactive calls.
18. Use old denim to make deckchair covers.
19. Make cushions from old clothes.
20. Use beautiful ads and pictures from magazines as wrapping paper for gifts.
21. Frame pictures from old books or magazines or even wallpaper scraps to make original artworks.
22. When buying steak ask the butcher for the skirt rather than fillet: it tastes better, is half the price and shows gourmet taste.
23. Dye those greying white t-shirts in bright orange, fuchsia (hot pink) or purple the in-colours for 2009.
24. Don't buy bottled water. Instead add ice cubes and slices of cucumber, mint, lemon or ginger to filtered water and serve in glass jugs - or pour into old bottles.
25. Herbs from your garden such as lemon verbena and mint make elegant after lunch or dinner drinks and are far healthier than alcohol or coffee. Chill anything leftover for delicious iced tea.
26. Make skin tonic with two-thirds rosewater, one-third witch hazel - you can buy ingredients at any chemist or health store. Store it in a beautiful bottle and use or give as gifts.
27. A tablespoon of Jungle oats makes a fantastic face and hand mask.
28. Boil meat, chicken or fish bones with a bay leaf, a chopped carrot, a chopped wand or two of celery. Cover bones with water then boil to half and freeze in ice cube trays for healthy, cheap stock.
29. Swop the books or cd's you are tired of with friends.
30. If you are battling to pay your debts, do the debt calculator on the Consumer Assist website and consider making an appointment with a Consumer Assist accredited Debt Counsellor.
31. Pay off short term, high interest debts like store accounts and credit cards.
32. Stop using credit cards and start paying cash or use a debit card.
33. Make sure you are not paying more for bank fees or interest than your agreement stipulates. Ensure you are on the most cost effective fee structure for your needs.
34. Limit the use of your ATM card - those fees eat away at your bank account.
35. Pay more than the required minimum repayment amount of your account if you can afford it.
36. Review your insurance costs with your broker.
37. Try to increase your income I.e. do overtime or get a second after-hours job - use this money towards paying off your debts.
38. Resist temptation. Is the item you desire really necessary?
39. Cut down on luxuries, that might be anything from cigarettes and alcohol, to expensive chocolates or toiletries, to unnecessary clothes or furnishings.
40. Do not take out any more accounts or loans, pay up what you have and use the cash saved on interest to make wealth-creating investments.
41. Create an emergency savings fund so you don't have to rely on credit should disaster strike.
42. It is essential to have a budget and stick to it - trim expenses to the minimum
43. Write down your plan of action, pin it up on a noticeboard and stick to it.
44. Cook for yourself - avoid expensive take aways or pre-cooked meals, if you invite friends have a bring and share, don't pay for all catering costs yourself
45. Identify something that you want to do once you reduce your debt , like going on an exciting holiday - it will motivate you to get out of your debt
46. Consider a consolidation loan
47. Do not commit to new debt to pay existing debt
48. Shop at sales.
49. Plant a vegetable and herb garden, the food is healthier and fresher and costs nothing.
50. Keep glass jars and make your own preserves, jams, marmalades and pickles when in-season food is plentiful and cheap. It is far more delicious than those bought in shops and lovely as gifts.
51. Name brands on clothes are for the nouveau riche - switch from name brands on food, clothes and everything else and opt for cheaper alternatives.
52. Take very early morning or late night flights to save costs.
53. Gets an executive car parking company to meet you at the airport and park your car if going on a long trip, it's cheaper than taking a shuttle and much cheaper than parking at the airport - plus they clean the car too.
54. Meat is expensive and too much is unhealthy, eat more pasta and vegetarian foods.
55. Take out a video store contract; it's cheaper than movie tickets.
56. If you pay cash, ask for a discount - good stores will always give you one.
57. Roof insulation cuts heating and air-conditioning bills.
58. Underfloor heating is cheap if you do-it-yourself and can cut up to 40% off your winter heating bill.
59. Buy books at second hand book stores.
60. Encourage your children's school to have a second hand clothes store and to include satchels, books and shoes too.
61. Always get three quotes before you buy anything
62. Ask for a discount if you pay cash, most retail outlets will give a 10% discount for cash
63. Every time you get paid, put away something in savings, even R50 a month gives you R600 a year before interest. Once you have reached R1 000 put it in a saving scheme with high interest and where the money is difficult to access such as a 32 day call account, or Post Office Retail Bonds.