What to do in SA’s junk status
What steps can homeowners take to soften the junk status blow?
Here are a few pointers to guide you as a homeowner:
Reduce your spending
Don’t feel humiliated about re-evaluating your budget and cutting down to the absolute necessities, do what you can in order to become debt free as quickly as possible by cutting down your spending in any way possible.
Turn your cents around to save some money and cut some losses.
Pay off your debt
The bad effects of reaching junk status are that interest rates are likely to rise, and hurts most when you have a lot of debt.
Keep what is necessary in your savings and use the rest to settle your debts, start by paying off your highest interest rate debts first.
IE. If the place that you’re renting from, is a far drive from your workplace you should consider moving to someplace closer to your work to lessen the transport cost and maybe save on rent.
Extra Income
Having an alternative source of income can really benefit you in paying off some of your debt faster and due to the declining economy with SA reaching junk status you should really pay attention to the extra money you make and nurture it to continue your success.
Standardized your rates so that customers will be able to afford what you are selling and ensure the service is on key, so that they will continue to support you in your business.
If you have access to the internet try advertising your products online for local and foreign countries. Focus on countries that economies are doing better.
After settling your debt
When your debts are settled, maintain the lifestyle you lived, while paying off your debts and start saving money again. Properties and shares are likely to be lower, if you are in the position to buy anything at this stage it would be a good investment to buy now.
Prices would be lower at this stage so when the market increases again, you can sell for a higher price.
Stick to your plan
Don’t lose hope or get caught up in all the negative publicity, if you stick to your plan and budget you will be fine. Don’t buy or sell on impulse, rather go seek advice from a professional rather than acting on the hearsay of others.
We as humans tend to dive straight into the negative pool with the others, the best thing to do is to not panic, to keep your head up and to stick to your plan.