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WITH rising inflation, power outages and rocketing food and fuel prices it is no surprise that South Africans are resorting to debt. 

With many reportedly spending 75% of their incomes on repayments and struggling to afford the basic necessities.

The Debt review centre has released a list of tips to help those who fear they might be falling into the debt trap.

Tips for controlling debt

1. Formulate a monthly budget, stick to it and review it on a monthly basis
2. Don’t fall behind on monthly payments for any bills, including credit cards, store cards, utility bills and any other financial obligations.
3. Only take credit if you can afford to pay the monthly balance on the outstanding credit that comes with the purchase.
4. Try to save at least three months of living expenses, should any unforeseen accident, loss of employment or emergency arise.
5. Divide savings into the following categories:
   • Education (Children and yourself)
   • Retirement (How much do you aim to have saved up for your retirement?)
   • Emergency Fund (car servicing, unforeseen medical expenses etc.) 

6. Understand the concept of interest and how this affects your monthly spending. 
7. Buy on sale. Avoid paying full price by purchasing them on sale and stocking up.
8. 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.