Former President Kgalema Motlanthe moved swiftly to damp fears about South Africa’s transition by strengthening cabinet and ensuring continuity in financial administration; the United States Congress rejected a $700bn bailout package and Ireland, the second wealthiest country in the world, went into its first recession in 25 years. “Governments are taking extraordinary measures to prevent collapse, but for cash strapped consumers there are no central banks to bail them out they have to find new ways of cutting back on expenses or increasing income, perhaps by finding a second job,” Andre Snyman, CEO of South Africa’s largest debt counselling organisation, Consumer Assist said. “Fraud squad detectives at Hillbrow, South Africa’s busiest police station, have also told us that their case load is spiralling as more theft takes place in the workplace and from stores, but too, those trying to sell goods through classifieds are getting ripped off by fraudsters who pretend they have paid for goods and then disappear with the items as consumers discover that alleged bank deposits never took place.”

In Hillbrow’s court one, as an example, a former Johannesburg Hospital employee, a single mother of three children who stole a packet of sugar and a packet of teabags from the hospital was sentenced to R1 000 or four months in jail. Her colleague who stole 1kg of maize meal received the same sentence. “These are essentially crimes of poverty, of people not being able to make ends meet and although we are seeing many more employers including large financial institutions approaching us to assist their staff with debt counselling and financial wellness training, thousands more people need help,” Snyman said. 200 applications for debt counselling a day “We are seeing a growing number of applications for debt counselling; a year ago we averaged 10 a day, now it is around 200 a day. “Many of the stories we hear from people are tragic and not a consequence of financial negligence. One couple, as an example, lost their son and the financial burdens are a result of his illness and death put them into serious debt, they risked losing their home until one of our debt counsellors intervened and negotiated a more affordable payment package with their creditors.” Consumer Assist has compiled brief tips of some of the things consumers can do to trim costs and manage their finances better:

1. 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.
2. Pay off short term, high interest debts like store accounts and credit cards.
3. Stop using credit cards and start paying cash or use a debit card.
4. 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.
5. Limit the use of your ATM card – those fees eat away at your bank account.
6. Pay more than the required minimum repayment amount of your account if you can afford it.
7. Review your insurance costs with your broker.
8. Try to increase your income i.e. do overtime or get a second after-hours job – use this money towards paying off your debts.
9. Resist temptation. Is the item you desire really necessary?
10. Cut down on luxuries, that might be anything from cigarettes and alcohol, to expensive chocolates or toiletries, to unnecessary clothes or furnishings.
11. 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.
12. Create an emergency savings fund so you don’t have to rely on credit should disaster strike.
13. It is essential to have a budget and stick to it – trim expenses to the minimum
14. Write down your plan of action, pin it up on a noticeboard and stick to it.
15. 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
16. Identify something that you want to do once you reduce your debt , like a going on an exciting holiday – it will motivate you to get out of your debt
17. Consider a consolidation loan
18. Do not commit to new debt to pay existing debt
19. Shop at sales.
20. Plant a vegetable and herb garden, the food is healthier and fresher and costs nothing.
21. 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.
22. Name brands on clothes are for the nouveau riche – switch from name brands on food, clothes and everything else and opt for cheaper alternatives.
23. Take very early morning or late night flights to save costs.
24. Get 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.
25. Meat is expensive and too much is unhealthy, eat more pasta and vegetarian foods.
26. Take out a video store contract; it’s cheaper than movie tickets.
27. If you pay cash, ask for a discount – good stores will always give you one.
28. Roof insulation cuts heating and air-conditioning bills.
29. Underfloor heating is cheap if you do-it-yourself and can cut up to 40% off your winter heating bill.
30. Buy books at second hand book stores.
31. Encourage your children’s school to have a second hand clothes store and to include satchels, books and shoes too.
32. Always get three quotes before you buy anything
33. Ask for a discount if you pay cash, most retail outlets will give a 10% discount for cash
34. 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.

FOR FURTHER INFORMATION www.consumerassist.co.za 0861 21 22 23 debt counselling call centre

Contact information:Andre Snyman CEO Consumer Assist andre.snyman@consumerassist.co.za (Languages: English, Afrikaans)

Issued by: MediaOnLine mediaonline@global.co.za 011 646 7637or 021 762 2656