Lower monthly instalments might free up cash, but this should mean that you can spend more again. If this is your attitude then you will definitely end up in financial termoil again.

Another risk is that while iyou pay lower installments, this also means being in debt for longer. Being in debt for longer means that overall you will be paying more interest. i.e. consolidating debt can be expensive over the entire term. Attempting to pay the consolidation loan off sooner will save you a lot in interest charges.

If you are struggling to make monthly repayments to all your accounts, but still have an acceptable credit score, then a debt consolidation loan can help you a lot with freeing up income. It is important to adjust your spending habits so that you are 100 percent sure that you can make minimum repayments every month until the debt is settled. We recommend trying to pay back more, where you can, to reduce the term of the loan.

If you have a lot of debt and a poor credit score, you should consider Debt Review. Debt Review not only consolidates all debt into one installment,reduces repayments and interest rates, but also repairs you credit score. Once you complete the process a Clearance Certificate is issued clearing your credit report of all negative listings.

1) It is vital that you draw up a monthly budget - every month.

2) Formulate a good payment plan, enabling you to pay off your debt as fast as possible.

3) Ask your HR Department if you have made use of all the company benefits, like housing allowances, petrol allowances etc. This can help increase your income.

4) Consider creating additional income by utilising your talents, renting out a room or cottage, applying for a second job on the weekends.

5) Consolidate policies.

6) Review your insurance policies annually to ensure that they are inline with depreciation of assets.

7) Watch cell phone costs. Switch to prepaid once your contract is completed.

8) Manage petrol costs by doing round trips instead of driving backwards and forwards. Car pool where possible.