There is a bunch of economic data coming out the last week of July 2009. Inflation data and unemployment data, insolvency data. Big measures of how the economy is doing. Without trying to make a prediction the numbers are not expected to be very positive with the global economy still faltering. Many people find themselves paying off lifestyle debt in the face of a difficult economic environment but there are still some things that you can do to make your life easier.
Lifestyle debt is a consequence of too good a time for too long a time. Instead of prudently and let's admit it, rather boringly, putting money aside for later we have been taking on loads of debt over the last eight years to finance flashy lifestyles. When the property market was still booming there were so many 'instant' millionaires that we began to believe the hype. Extra mortgages were taken out to finance overseas holidays, it felt like the good times were never going to end.
What goes up must come down, often with a sickening thud of reality. This is where we find ourselves now. There is very little in the way of a savings culture in South Africa and people are finding themselves in debt trouble due to the fact that they financed their lifestyles on credit instead of saving for a rainy day. It is National Savings Month and it is an opportune time to plan a budget out, see where you can save and start to pay off that lifestyle debt hangover. Don't forget the market will come up again and you want to be in a better position to take advantage of it again then.
