Far too many young people, graduates and professionals in particular, go through a baptism of debt when they start off in their careers. They have credit cards, personal loans, car loans and before they know it, they are under debt review. Some never get out until retirement age. As parents, we are partly responsible for this because we don’t educate our children about money. Some get trapped as they try to build their credit profiles so they can buy cars, homes, etc… I hope these conversations will help our young people to do better financially and to avoid debt.
 
Below are highlights of the messages we shared from 7 to 11 June
 
Youth & Debt Review What happens if a person is under debt review? Is it advisable to go into debt review? How does one get out of debt review? We discussed these on Mams FM.
YOUTH & New Money Most of us grew up with just enough money, some of us grew up with very little or no money. How is this affecting how we are handling money today? Are we still nursing childhood scars with money? Overbuying things?
YOUTH & Budgeting; Do you budget? Do you want us to give you a simple budget template so you can start? Do you know why it is important to budget & to pay yourself first, before you pay anyone else?
Many young people don’t budget hence they end up spending more than they earn.
 
YOUTH & Personal Loans – do you know why your personal loan is likely to make you personally poor? Do you know the interest rate you are paying? Do you know the total cost of a personal loan?
If we understood interest rates, credit assurance and all the other costs we incur when we buy on credit, we would all be very scared of debt, especially short term, unsecured debt.
 
YOUTH & Childhood money memories; What are you childhood memories of money? Do these memories still affect you? Do you have children? What memories are you creating for you kids?
As a Financial Advisor, I sometimes recognise that some people are still struggling with sad childhood memories and to make matters worse, these memories are causing them to make irrational decisions about their money. Once such memory is “My parents were poor so I will be always poor”. It doesn’t matter how much money they earn, they just blow all of it, month in and month out, year in and year out and towards retirement, they realise just how much they have wasted. Heal yourself from sad memories so you don’t use money to numb them. Get a coach to guide you with your money decisions
 
References
 
For more details, read the following chapters in the book From Debt to Riches: Steps to Financial Success

  1. Chapter 4 –  What you should know if you are already in debt trouble

pages 46 to 54 for more details on Debt Counselling

  1. Chapter 6 –  Your Budget & What it says about you will help you to think about how you are spending money
  2. Chapter 3  –  The Cost of Debt for more details.

Visit our BLOGwww.thuthuka-sa.co.za and type Debt Review in the Search button. You will find the following newsletters

Civil Engineer Ezekiel’s 6- year Journey in Debt Review & how much it cost him : RADIO INTERVIEW

Lehlabiwa Tlomatsana’s 6 year Journey in Debt Review : Real Life story

Understanding Debt Review & How it Affects Your Credit Scoring