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5 ways to manage your junk status budget

Published on: 01 June 2017

How junk status affects you as a car owner

With South Africa having being downgraded to junk status, many of us have been asking ourselves what exactly it means for the individual - and how deep the impact will be felt by consumers. If you’re shopping around for a car or already have one, you may even be considering going without car insurance.

With all the widespread speculation on price hikes and a further downgrade, there are a few considerations that you may want to keep in mind:

  • SAVE! Be strict on yourself. Saving money may not be the easiest thing to do (more so with the cost of living on the rise), but it is worthwhile and your savings fund can come to your rescue in difficult times.
  • BUDGET! Go back to the drawing board and plan your money. Don’t just set a budget, stick to it. Nobody knows how long South Africa will hold the junk status title, so ensuring you are sticking to your budget is an effective way to endure this difficult period.
  • PAY UP! As tough as it may be, work towards settling your outstanding debt. Many people find themselves borrowing money from more than one entity, causing them to struggle to meet payment deadlines. Set a time-frame for yourself every month to pay off your debt and stick to the payment schedule. Missing or delaying payments only gets you into further debt.
  • CUT DOWN! Analyse your monthly expenses and identify the expenditures you can afford to go without. So often, people do not realise the amount of money they’re spending on unnecessary items each month. Be firm when cutting down on certain costs.
  • STAY INSURED! Tempting as it may be, it’s not worth the risk. By all means, avoid cutting down on your car insurance. Feeling the pinch may cause you to contemplate calling your insurance company and cancelling your car insurance. Rather chat to them about more affordable car insurance options to keep you insured until you’re back on your feet. This will benefit you in the long run should you meet up with an unfortunate situation.

These are tough financial times, but don’t let the junk status get you down. Being savvy with your money will ensure you always have a pocket of savings to fall back on. Be sure to keep your car insurance policy up-to-date with your insurer; as a MiWay client, you can even do so online or via the app. Insure online and enjoy #InsuranceFreedom.