NavigateZA
Back to Debt Snowball Planner
Guide5 min read

How to Get Out of Debt in South Africa: A Step-by-Step Plan

Being in debt is stressful. But you can get out of it. It does not matter how much you owe — if you follow a simple plan and stick to it, you will become debt-free. Here is how.

Key Takeaways

  • Write down every debt you have (store cards, loans, everything)
  • Pay the minimum on all debts, then put extra money on one debt
  • The snowball method (smallest first) keeps you motivated
  • The avalanche method (highest interest first) saves you money
  • Even R200 extra per month makes a big difference over time

Step 1: List all your debts

Get a piece of paper or open your phone. Write down every single debt you have. Include the name, how much you owe, the interest rate, and the minimum payment. Do not leave anything out — store cards, personal loans, car finance, everything.

  • Credit cards and store cards (Woolworths, Edgars, etc.)
  • Personal loans (African Bank, Capitec, etc.)
  • Car finance
  • Clothing accounts
  • Money you owe to family or friends

Step 2: Choose your method

There are two popular ways to pay off debt. Both work. Pick the one that suits you best.

  • Snowball method: Pay off the SMALLEST debt first. This gives you quick wins and keeps you motivated.
  • Avalanche method: Pay off the HIGHEST INTEREST debt first. This saves you the most money in the long run.
  • If you are emotional about debt, use snowball. If you are good with numbers, use avalanche.

Step 3: Find extra money

Look at your budget. Where can you cut back? Even R200 or R500 extra per month will speed things up a lot. Cancel subscriptions you do not use. Cook at home more. Sell things you do not need on Facebook Marketplace.

  • Cancel unused subscriptions (DStv, streaming, gym)
  • Pack lunch instead of buying
  • Sell things you do not use
  • Do overtime or a side job for a few months
  • Every extra Rand goes to your target debt

Step 4: Attack one debt at a time

Pay the minimum on all your debts. Then take ALL your extra money and throw it at your target debt (either the smallest or the highest interest one). When that debt is paid off, take its minimum payment plus your extra money and add it to the next debt. This is why it is called a snowball — it gets bigger and faster.

  • Minimum payments on everything
  • All extra money goes to ONE debt
  • When it is paid off, move to the next one
  • The payments get bigger as you go (the snowball effect)

Step 5: Stay out of debt

Once you are debt-free, do not go back. Cut up store cards. Only buy what you can afford with cash. Build an emergency fund of 3 months expenses so you never need to borrow again.

  • Cut up store cards and credit cards
  • Build an emergency fund (3 months of expenses)
  • Only buy what you can pay for in cash
  • If you cannot afford it today, save for it

Ready to see your own numbers?

Use the Debt Snowball Planner