Conquer debt

For many people, payday is a stressful experience because of over-indebtedness and growing financial constraints. Simple debt-relief guidance and advice could go a long way to greater peace of mind and fostering long term financial stability and wellness according to John Manyike, head of financial education at Old Mutual. There is no doubt that over-indebtedness could affect one’s mental health.

John Manyike says:

1. The issue starts with most people not being pragmatic about how they manage their money. Dealing with one’s mindset first is very critical. A person must start by firstly accepting that there is a problem, and then should make a conscious decision to live within their means as well as making use of a budget by identifying what is a need and what is a want. You need to psyche yourself up even if it means pretending you earn less than what you actually earn and behave as such when it comes to spending money.
2. “You can use credit to create wealth. It also does not mean that everyone that has been over-indebted fell into that situation because of recklessness or irresponsibility. Circumstances differ from person to person. But there is a large portion of our population that is obviously credit hungry, living in too much debt for both instant gratification and the pressure to be validated via social platforms,” said John.
3. “Some people’s month ends are like a photo finish. Some are payday millionaires that spoil themselves rotten then become broke just three days later because they have spent the little money that was left after debit orders”, adds John. The reality is if you can only afford something on payday and not during the month, it simply means you cannot afford it.
4. The Old Mutual 22 Seven app is ideal for people who are struggling with budgeting. Spreadsheets have pre-populated debit orders and other debt repayments which helps the user take better control of their repayments. It also assists in helping determine the best and fastest ways to pay down debts.
5. If over-indebtedness is not taken seriously, it can often affect the daily functionality of many people because it comes with unimaginable stress.
6. Performance at work, social and family relationships could change, and it might also pose many challenges for future job prospects because employers perform recruitment credit checks on applicants as part of the screening process.

So, it is best to rather avoid getting into such uncomfortable situations and take control of your money. Start bossing your money around and be On the Money, concludes John.