At Oyisa United Debt Specialists we don’t only want clients to become debt free, we want clients to stay debt free!
Basic principles to follow in order to stay debt free:
- Formulate a monthly budget, stick to it and consistently review it on a monthly basis
- Never fall behind on monthly payments for any bills, including credit cards, store cards, utility bills and any other financial obligations.
- Only take now and pay later, if you can afford to pay the monthly balance on the outstanding credit that comes with the purchase.
- Always save at least three months living expenses, should any unforeseen accident, loss of employment or emergency arise.
- Divide savings into the following categories:
- College (How many kids do you have?)
- Weddings (How many daughters do you have?)
- Replacement vehicles (How long will your current vehicle last?)
- Retirement (Where do you currently stand with your pension etc? How much do you aim to have saved up for your retirement?)
- Major purchases (Do you have excess money to pay for new necessities?)
- Learn to negotiate.
- Understand the concept of interest charges.
- Buy on sale. If you are certain that you will be using an item regularly, avoid paying full price buy purchasing them on sale and stocking up.
- Be realistic by setting attainable and achievable goals. Cut down on spending to avoid spending more than your income. It is essential to stay in a debt-free positive territory.
- Plot your net worth and keep track of your financing:
- Total assets – Total liabilities = Net worth
- Total assets: Combine all your money from your savings or checking account, trust funds, property value, car value, stock value, etc.
- Total liabilities: Combine all your debts such as home mortgage, credit card balance, etc
Your goal is to have a positive net worth value at all times and it should be increasing as time goes by.