05 Sep Emergency Funds While Under Debt Review Explained

Ask anyone struggling with debt, and they will probably agree that saving money is the last thing on their minds. When you are over-indebted, it is difficult to imagine getting through a month comfortably, let alone putting aside money for the unforeseen. Fortunately, there is a way to benefit from debt relief and have the financial capacity to save. Debt review saves you money so that you can maximise your budget.

Debt review offers over-indebted South African’s a legal way to reduce debt repayments. With this comes many advantages. You can live in the moment without stressing about money, while also planning for what lies ahead. It is possible to save emergency funds while under debt review – let’s explain how:

Apply for Debt Review

While there are different debt help systems available, debt review works best for over-indebted consumers. To get started, allow our team to assess your affordability and finances to determine if you qualify. If you do, we will proceed to negotiate lower instalments with your creditors, and also try to reduce interest rates. We then present you with a new, consolidated repayment plan that suits your budget.

Adjust your Budget

Now that you’re paying less toward debt each month, your budget should look a lot better (use our free debt review calculator to get an idea beforehand). Make sure to prioritise important payments first, like your debt review payment, rent, food, and transport. Then, allocate a reasonable amount (even if you start small) towards savings.

Open a Separate Account for Saving

To keep emergency funds available while under debt review, we suggest opening a separate account. This will stop you from being tempted to spend it. Some accounts require a 30-day notice to access the funds, or may offer better interest rates. Take some time to research this, or even meet with your bank for professional guidance. As you see your savings balance grow, you’ll discover a sense of security and feel motivated to continue investing in what matters.

Assess Non-Essential Expenses

While you’re under debt review, you cannot access new credit, and you are protected from creditors. These are just some benefits of debt review. With this newfound freedom, keep sight of your ultimate goal: overcoming debt and rebuilding your financial independence. Track your spending to see where you are spending money unnecessarily. Put expenses you can do without, like takeaways or impulsive shopping sprees, aside. Redirect this money to your savings, which will help you avoid the need for credit if an emergency expense arises.

Saving money while under debt review is about maintaining consistency. With this savings in place, you don’t have to rely on credit if things get tough and you’re met with unexpected costs. Look forward to living your life freely – overcome your debt and save money towards the life you deserve. CONTACT US now to get started.