How to manage household bills in Janu-worry
As the new year begins, January can feel like an uphill financial battle – especially for those who received their December pay cheque early and have to worry about the mountain of back-to-school expenses. Managing household bills effectively during this time is crucial to avoid unnecessary debt and financial stress in the seemingly endless month ahead.As challenging as it may be, Regional Director and CEO of RE/MAX of Southern Africa Adrian Goslett recommends that homeowners establish sound financial habits now to ensure a more stable and stress-free year ahead.
“Building onto bad debt is not a way out, but rather a way of building up further financial stress. It is important to evaluate your budget and trim all the non-essential costs to free up resources to cover your critical bills, like your home loan,” he encourages.
With the likelihood of interest rates decreasing further in the year ahead, it might be tempting to take on more debt – but Goslett warns against this. “Taking on bad debt like car loans or clothing accounts, even during a cycle of interest rate cuts, is a risky move. Lower rates might make repayments seem more manageable, but debt can quickly spiral out of control if not handled carefully,” he cautions.
Cutting costs
By prioritising essential expenses, trimming non-essential costs and seeking creative solutions, you can find ways to navigate this challenging month without taking on further financial strain.
For starters, if possible, find ways to supplement your income. Sell unused items online, offer freelance services, or take on temporary work to cover gaps in your budget. If your home has the space for it, Goslett suggests renting out a room to generate extra income to help you get through the month. “If you have family who you could stay with, you could even rent out your whole home as a short-term holiday rental if it’s in a desirable enough location,” says Goslett.
If you cannot find ways to supplement your income and you’re really struggling to meet payment deadlines, it is always better to reach out to your service providers before you lapse on any payments. Many companies offer options such as payment plans or temporary relief measures to help customers manage bills during tough times.
If you do find yourself consistently struggling to meet monthly expenses, Goslett suggests that it might be time to explore more permanent solutions, like downsizing. “Moving to a smaller home or more affordable area can lower your rent or mortgage payments and could help you to get out of debt before it gets out of control,” he suggests.
“The festive season often leaves households with higher expenses and tighter budgets, but if you are feeling the pinch beyond just the month on January, then reach out to your nearest RE/MAX Office and find out if there are more affordable housing options that could help alleviate some of your financial pressures,” Goslett concludes.