If wealth is defined as what you keep and not what you earn, then surely letting your hard earned money fly out the window to service debt cannot be conducive to accumulating wealth. How do people get to a stage where they have enough cash to actually start investing and accumulate wealth? If you are over-indebted, which 50% of South African credit active consumers are, how do you get rid of that debt burden to enable you to start investing? Wikus Olivier, Debt Management Expert at DebtSafe, shares a few pointers on how to stay out of debt, for your wealth’s sake.
If you are not saving, you are making debt; therefore, try to stay out of debt in order to optimize your chances of becoming wealthy. Not being overburdened with debt means that you will have real cash to invest and your net worth will not be in the negative as most of your fellow citizens’ are. People who make use of debt to maintain a certain lifestyle will never become truly wealthy.
The most important thing to remember is that debt will not disappear overnight. Getting out of debt will require a medium to long-term strategy, and discipline.
Did you know that, according to the World Bank, South Africans were the biggest borrowers in 2014 worldwide?
