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How to Pay Off Debt

It seems debt is an unending spiral for many South Africans who will take years to get out of it.

Andrew Padoa




The statistics claim that the average South African household uses almost 73% of its income to service debt. This disturbing statistic indicates that we are not well educated about the consequences of debt, and somewhat inept at becoming debt free.

The reality is that paying off debt earlier than expected can save you thousands of rands.

Here are three guidelines to paying off debt:

1) Don’t get into debt in the first place

If you don’t have the money to buy a particular item, don’t buy it. Practice delayed gratification and wait until you have the money. Exceptions to this would be a bond for your home and car.

2) Pay your debt off from highest to lowest interest rate

For example, if you have a bank credit card with an interest rate of 18% per annum, a Woolworths credit card at 12% per annum and a bond on your home at 9% per annum, it would make sense to contribute your surplus income to pay off the bank credit card first until it has been fully paid off, then align your surplus income towards paying off the Woolworths card etc.

3) Decrease expenses and increase income

I have been following the story of a MBA graduate fromHarvardBusinessSchoolwho challenged himself to pay off his student loan of $ 90 717 in 10 months. He had no idea how he would do it as he did not have a lot of cash and his 12 months after tax salary was less than the value of the loan.

After his life savings barely made a dent into the loan, he realised he needed to do more. So he decided to decrease his expenses and increase his income.

During the first seven months, he didn’t go on a single dinner date or go to the movies. He didn’t go home for Christmas, and missed friends’ bachelor parties and weddings. He got better at DIY and figured out things like how to use duct tape to repair his car and zip-ties to repair his house.

During the first seven months, he had not bought a single item of clothing or a single ‘must-have’ gadget or gizmo.

To make extra money, he rented his spare bedrooms to strangers as well as starting a landscaping business.

He sold his second car, motorcycle, road-bike, and other unnecessary items and got rid of things that he thought he could never live without.

After a period of nine months, he had successfully paid off his student loan. His story can be found at:


Remember that it requires hard work, discipline and patience to pay off debt in a fast and efficient manner. Come up with your own goal on how to get rid of your debt and get started today.

Andrew Padoa works in the Private Client’s division at Consolidated Financial Planning. His area of expertise is investments, estate planning, retirement planning and portfolio benchmarking. He has had numerous articles published in the media on a number of topics related to personal financial management. Andrew is passionate about educating people and has given several financial literacy talks to both schools and corporates. His objective is to use his abilities and knowledge to help others achieve their financial goals. Visit for more information

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  1. Carl Muller

    Jun 14, 2012 at 13:47

    What is the quickest way to double your money?

    Fold your bills and put it back in you wallet!

  2. Willams Goodwill

    May 17, 2016 at 19:57

    I just want to thank the this loan company for the help they
    gave me thought the loan they gave me,i was so down and i almost
    losing my house and business, my children was not able to go to
    school again but when i met them they give me loan that was able
    for me to start my business again and pay up all my bill, now we
    are happy at home. and my home is ok and i use the money for the
    growth of my business… you can get to them from for any
    problem or any amount of loan you want.cos i got R32,000,00 and
    it was that very day i got it
    (via or
    and call +27843074577

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Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.



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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes




The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online


I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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