Debtfree Magazine Namibia (Sept 2023)

BREAK FREE FROM DEBT

E XCE LL ENCE IS D OIN G

ORD IN A R Y THING S

E XT R AO RD I N A RI LY

W E L L

– John W. Gardner

FROM THE EDITOR

It is hard to be in debt. Really tough. No one likes to get scarey letters or phone calls. We hate to be threatened with losing our assets.

Sleepless nights and stress are normal when dealing with debt. And when we are stressed, we can some times lose focus and make bad decisions. We often give in to bad impulses or just make silly mistakes. Many people find that stress over money makes its way into our families and causes problems at home.

This is why it can be nice to talk to someone about your debt and get good advice. Their outside perspective can help you see the problem areas and what you need to concentrate on sorting out.

Sometimes that’s earning more money, or spending less money on certain things. Other times it is concentrating on paying off the right debts first.

Maybe it is saving money by swapping insurance policies or where we bank. All these factors can have an impact.

What you need to ask yourself is: do I want to be in debt? Do I like it?

If not, then take action. Make a plan and stick to it. If you are too stressed to make a plan or worry your plan is not right then ask an expert.

Make paying off your debts your focus, your goal.

We all know, having a goal is not the same as achieving that goal. So, what can help us stay on track? What can help us reach our goals? In this issue we delve into that topic and pick up a few tricks and suggestions that can help keep us motivated when we really don’t feel like it.

Sometimes paying off your debt can just feel like its “too hard”, “too slow” and “too tough”. If you are feeling like that right now then check out the article to see if it can help you find a way forward.

After all, time flies and if you can stick to a plan. If you can stay motivated and keep on keeping on, then pretty soon you will successfully reach your goal and be debt free.

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BREAK FREE OF DEBT

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CONFERENCE

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BREAK FREE FROM DEBT

BREAK FREE FROM DEBT

WORTHWHILE GOALS CAN BE HARD TO ACHIEVE

Have you ever set a goal but struggled to achieve it? For example, many people have the goal of getting out of debt.

If you currently have a goal that you are working on, but have not yet achieved it, it is important that you know that you are not a failure. If you are working on it, (yes, even intermittently) then you are making progress.

Even reaching a simple goal often requires a lot of time and hard work. The fact that you still want to reach your goal, shows that you want to give your best.

Let’s take a look at how you can set and reach realistic goals, such as paying off your debt.

SET REALISTIC GOALS

It is important that you do not expect more from yourself than what you can realistically achieve, that would be foolish.

Your goals should be reasonable, according to what your current circumstances allow you to achieve.

For example, if you have a lot of debt, it would be unrealistic to set yourself the goal of paying it all off in one go, or after just a few months. Often, credit providers add so much interest to debts, it can feel like you will never catch up.

No, it would be much more realistic to plan to repay that debt over a longer time period.

MOTIVATION IS VITAL

Motivation plays a key role in reaching any goal. A motivated person has a strong incentive or desire to work toward their goals.

Having strong motivation is like a strong wind that pushes a sailboat toward its destination. If the wind carries on blowing, the sailor will definitely reach their destination, and with a strong wind, they may even arrive sooner than expected.

In the same way, the more motivated we are, the more likely we are to reach our goals.

So, what can you do to feel more motivated?

FOCUS ON YOUR GOAL

Even just thinking about and talking about your goal can help you increase your motivation to achieve it.

Sharing your goals with others can also help motivate you to reach them. As a bonus, once your family and friends know about your goals, they may be able to offer practical support in achieving them.

THINK ABOUT YOUR PROGRESS

When you see that you have already made progress (even if only a little progress) it can help you build your desire to follow through and keep going.

For example, checking your statements from your credit providers each month while paying off your debts can help you see how far you have already come.

Track your progress. It will help build your motivation to keep on making progress.

Now it is just up to you to keep going.

FOCUS ON THE BENEFITS

Have you thought about what it will be like to not owe anyone anything? Not one cent.

You may never be a millionaire (we wish!) but hardly anyone these days can even say they are debt free, but you could be.

So, keep thinking about what that would mean for your life. Imagine being able to use every cent that you earn for your own benefit. Never having to check balances and wonder if your payments will go off this month. No moving funds from one card to another.

Imaging never having to worry about scary collections calls, emails or letters.

Focus on these benefits, and you will feel more and more determined to stick with your goal to get out of debt.

CHOOSE YOUR FRIENDS WISELY

If you spend time with people who are sick, it is likely that you too will become sick, this is something the COVID 19 pandemic taught us.

Spending time with people who waste money or do not spend wisely, can also have a bad influence on us and can rub off on us.

Instead, spend time with people who also want to live a debt free lifestyle, and are not focused solely on what they own.

NOT FEELING VERY MOTIVATED?

Realistically, though, we all have days when we do not feel motivated. Sometimes when things are tough, you may begin to think that the goal of repaying your debt, is the problem, rather than the solution. Does this mean you are going to fail?

No, in the olden days when sailors were at sea, one day the wind would be strong and move them quickly, but other days it would be weak and they may not feel like they were making any progress.

On days like that, they may have had to take out the oars and start rowing themselves, so that they could keep making progress (even if it was just a little). Soon, they would move to an area with more wind and be underway at full speed.

Our motivation can be like that wind; your level of motivation may vary on different days, on some days, we may feel no motivation to work on getting out of debt. But if we were to work towards our goal only when we felt motivated, we might never actually reach it. Rather, we need to be like ye olde time sailors, and find other ways to make a little progress, even when not motivated. This may mean we need to be strict with ourselves and show self-discipline but the results are worthwhile.

BREAK FREE FROM DEBT

CONSIDER THE BENEFITS TO FAMILY & FRIENDS

When we have lots of debt it can be difficult to be generous to our family and friends.

We constantly have to count everything we spend. It always hurts to have to say “no” to your kids when they want something, or to have to skip going out with friends because we just can’t afford to.

If you had no debt, then this would not be the case. We could afford to be more generous (within reason, of course). So, consider how achieving your goal of getting out of debt will also benefit your family and friends.

SELF CONTROL IS NEEDED

Self-control is the ability to control one’s feelings and actions.

Self-control is also required in order to move us to accomplish a task especially if it is difficult, or if we do not feel motivated.

The ability to ‘push through’ the tough times or times when you do not feel motivated will help you reach your goal. It can also help you in other areas of your life.

So, sometimes you will need to be strict with yourself and just do what needs to be done, even when you don’t really feel like it.

Developing this quality is vital for success.

THERE IS NEVER A GOOD TIME

When setting a goal, it is important to know that there is never going to be a perfect time to start.

Do not wait for perfect circumstances, if you wait for the right time to get out of debt, well, you never will. You can always find a reason to put it off. Another unplanned expense, another obligation that needs to be sorted out.

If you have a goal, like saving some money each month towards annual expenses (like a car license or back to school items) then don’t wait till next month, just start now. Otherwise next month, will turn into the month after that and you will never save anything.

If you have a goal then today is the day to start working on it.

START SMALL

We may lack motivation because our goal seems too hard to achieve.

Remember when you thought about getting out of debt?

That was a massive goal that probably seemed impossible. But maybe you took the first step and asked someone for advice about how to pay off your debt. That’s a small but important step.

If your goals seem too big, can you break down your goal into smaller ones? A baby does not start off running. Even Usain Bolt had to learn to crawl before he could run.

BREAK FREE FROM DEBT

WHEN YOU EXPERIENCE SETBACKS

Unfortunately, no matter how motivated or disciplined we are, we may still have setbacks.

For example, “unexpected events” may come along and kick us in the teeth.

Our best laid plans can go off the rails. When that happens it can drain us of confidence and motivation.

What can help us to deal with a setback?

SETBACKS DON’T MEAN YOU FAILED

If a runner trips and falls, do they just pack it up and head home, or do they get back up and carry on running.

After all, they have made great progress and it would be a waste to now stop due to a temporary setback.

And yes, we may face many setbacks, but just like when we were babies learning to walk, our determination can help us to get back up over and over, and eventually reach our goal.

BREAK FREE FROM DEBT

SETBACKS CAN BE REVEALING AND CAN HELP US AVOID SIMILAR PROBLEMS IN THE FUTURE

For example, did an appliance break down and how you need spend unplanned funds towards repairing or replacing.

You may have to wait for several weeks before you can afford to do so, what an inconvenience. Still, it does show us the importance of setting aside a few dollars each month towards the unplanned and unexpected. So, going forward, this can be part of your plan. Even if it is hard, you now know see the benefits due to this setback.

You can reach your goal, just like a sailor who happily reaches his destination. But remember, many sailors also enjoy the journey.

Similarly, as you continue working toward your goal, do not forget to enjoy each day. So, even when progress towards settling all our debt is slow, we can enjoy just having what we need and caring for our family.

This is not to be downplayed, it is vital.

YOU CAN ACHIEVE YOUR GOAL OF BECOMING DEBT FREE

It is important to have goals in life. Once you know what you are working towards, you can take practical steps to reach your goals.

So, think about all the progress you have already made in paying off your debt and focus on what it is going to be like when you finally get out of debt.

Even if you do have bad days where you don’t feel particularly motivated or where setbacks make things tough, please exercise selfcontrol and stick with the process.

Continue to chip away at your goal of becoming debt free and you will make progress one step at a time. Having no debt is almost like being the richest person in the room these days.

Be determined to pay down your debts each month and continue making progress towards whatever other goals you set for yourself, it will be worth it!

In an important step towards balancing the needs and rights of Namibians with the needs and somewhat overwhelming resources of credit providers, a new consumer education and rights’ association has been born.

The association is called NCFA.

WHO ARE NCFA?

The National Consumer Finance Association of Namibia (NCFA) is a debt and credit counselling association that aims to inspire financial well-being and provide credit counselling, low cost debt management solutions, and financial education to all Namibians regardless of background.

As we all know, there are many Namibians who do not have extensive financial education or access to counselling services when dealing with debt stress. Many consumers are becoming overwhelmed in dealing with their debt stress and need access to responsible options for dealing with their situation.

The National Consumer Finance Association of Namibia is the first (and only) credit counselling Association in Namibia.

WHAT DOES NCFA DO?

NCFA’s mission is to help individuals and families achieve financial wellbeing through effective credit and debt counselling, helping consumers find debt repayment alternatives, and making credit education available to all.

This education is primarily centred around consumer rights, successfully handling debt obligations, personal money management, and the wise use of credit.

NCFA also advocates for a fair and nondiscriminatory market place, for access to consumer credit, and promotes responsible credit granting and credit use, and effective redress.

For example, with the current Consumer Credit Bill out for comment, NCFA have been actively involved in helping bring various parties to

the table, sourcing comments and submitting suggestions for refining the Bill. In particular, members are hoping to see the re-inclusion of credit counselling into the Bill as this can offer many stressed consumers a dignified solution to dealing with their debt.

NCFA members have already helped a record number of Namibians, assisting close to 27,000 clients through one-on-one counselling. NCFA members have already made a significant impact on the economy with clients already having repaid over N$ 15 million in debt.

NCFA members have also hosted nearly 720 community education workshops and webinars across Namibia.

The National Consumer Finance Association of Namibia is the first (and only) credit counselling Association in Namibia.

DO YOU WANT TO BECOME A MEMBER?

If you would like access to support from others who are looking to improve their financial wellbeing and the wellbeing of all Namibians then you should consider joining NCFA.

NCFA hold an annual conference and gives members access to a monthly magazine about financial wellbeing and dealing with debt. Members also gain access to various services and products to help them effectively navigate their financial situation. Those who find they are dealing with debt stress are able to gain advice and counselling.

If you would like a voice to represent you and help coordinate your efforts to educate others about finances or just some advice on how to deal with debt then you can email: info@ncfa.org.na

BREAKING NEWS

NAMIBIAN CONSUMERS MARCH FOR RIGHT TO DEBT COUNSELLING

Groups of consumers all across the country marched on the 26th of August (Heroes Day). The banks, politicians and the collections industry were put on notice.

Disappointed consumers took to the streets, protesting the sudden removal of a section of the draft consumer credit bill that features credit counselling.

In an effort to raise awareness of this last minute omission, and how it will negatively impact on consumers ability to handle debt with dignity and in a reasonable, affordable manner, various marches were arranged across the country.

The organisers say that efforts to have the section reincluded will continue until acted upon.

IS A US STOCK MARKET CRASH COMING?

Investor Michael Burry, made famous in the movie The Big Short, has begun to make investment bets that the US Stock Market is about to crash.

Burry has joined many others in saying that the US Stock Market is about to burst and now he is putting his money where his mouth is. Burry is famous for being one of the first to bet against the markets back in 2008 before the housing market crash.

He is currently using more than 90% of his portfolio to bet that a crash is coming.