Debt & Budget Calculators

Getting Out of Debt, in the Right Order

Paying off debt is part maths, part motivation. These three tools cover both — a consolidation check, an affordability ratio and a budgeting framework — using South African figures and the National Credit Act rules lenders work under.

How to use these tools

• Debt consolidation — enter each of your current debts and the consolidation loan’s rate, term and fees to see the new single instalment and whether it costs less overall than your existing repayments.
• Debt-to-income ratio — enter your income and monthly debt repayments to see the same affordability ratio lenders use under the NCA.
• 50/30/20 budget — split your take-home pay into needs, wants and savings, and compare the guideline with what you actually spend.

What the figures mean

A debt-to-income ratio under about 36% is generally considered healthy by South African lenders; higher ratios make new credit harder to get and leave less room to absorb a shock. A consolidation loan's real saving is the gap between the total interest your current debts charge and the total interest on the single loan — compare both totals before you sign.

Common mistakes to avoid

• Paying only minimums on high-interest debt while the balance barely moves.
• Taking new credit to consolidate without changing the spending that created the debt.
• Budgeting without tracking — the 50/30/20 split only helps if you compare it against reality.

If repayments have become unmanageable, the National Credit Regulator oversees registered debt counsellors and your rights under the NCA.

Questions