Debt Help offers bonus advice

The Debt Help Financial Services (DHFS), a well-established financial management company specialising in debt management, has produced a short guide on how consumers should spend their bonuses wisely this year. Its mission is to teach people about managing their cash flow which can keep them out of debt and help them save.

DHFS' Levin Born says, “Save a minimum of 50% of your bonus this year. Open a savings account if you don't already have one; invest in a savings policy; don't splurge. Run your household as you would a business - cut costs.” With your bonus safely in a savings account, it gives you access to ‘cash' when you need it and reduces the need for credit which is by nature incrementally increased every month.

Born further warns that “the majority of South Africans live at a Zero Sum meaning that everything that comes in, goes out, and are therefore technically bankrupt.”

For those in this situation, here are six tips on how to spend your bonus wisely:

Buy a new set of tyres and save the balance (saves on fuel and maintenance).
Pay your child's annual school fees in advance.
Pay off at least 2 of your outstanding credit facilities and close them.
Pay a hospital plan or insurance policy upfront for a year.
Pay all outstanding service bills such as electricity and water.
Invest in a structured savings policy/investment for your child or retirement.

Through an original and progressive consultancy approach, the company applies its extensive knowledge in the credit and debt control industry to re-align business inefficiencies as well as rehabilitate consumer insolvencies.

For more details, visit: www.dhfs.co.za