Debt vs. savings: A step-by-step plan to prioritise both

With 73% of South Africans battling debt, balancing repayments and savings feels impossible. Try this approach:

1. Tackle “toxic debt” first

• Pay minimums on all debts, but focus extra cash on the highest-interest one (e.g., credit cards at 20%+).
• Use the “snowball method” if motivation is an issue: clear smallest debts first for quick wins.

2. Automate a mini emergency fund

Even R500/month in a tax-free savings account can prevent future debt if your car breaks down or you need a doctor’s visit.

3. Use employer-linked debt counselling

Many benefit plans partner with registered debt counsellors to renegotiate payments (often at lower rates).

4. Gradually increase savings

Once a debt is paid, redirect that cash to savings. For example, if you were paying R1 000/month on a personal loan, split R500 to savings and R500 to the next debt.

Next steps

Access the portal’s “Debt Management Toolkit” to download a custom repayment template or connect with me using the Contact button above.