Why You Must Save To Buy A Home

… there are a number of ways people can cut back on living expenses: 

- Writing out and sticking to a budget
- Eating out less
- Shopping around for the best prices
- Paying cash wherever possible
- Reviewing insurance policies and medical aids to ensure you are getting the best deal available
- Saving on electricity and water costs
- Curtailing unnecessary purchases and debt
- Draw up a savings plan, decide how much you want to save on a monthly basis and stick to it 

Managing debt has become one of the most important aspects of life in South Africa. It has been estimated that seven million South Africans are struggling to pay off their debts and it was recently stated that over 52% of South Africans have a bad credit rating. “These figures are alarming, given that the banks have taken a far stricter approach to credit and will not extend finance to anyone whose financial history is not squeaky clean,” says Goslett. 

With the banks being very strict with their lending criteria and thoroughly examining each applicant's credit record and ability to repay the loans, it is very important that you get your finances in order before you even apply for a home loan.

If you are listed on ITC for example you do not really stand a chance to get a home loan approved. In this case you should consider clearing your name and settling all your debt first. GetDebtCounselling.co.za can help you clear your name and settle outstanding debt.