[Posted: April 2012] For most of us, taking out a loan is as normal and acceptable as buying an ice-cream on a hot sunny day. Enjoy the privileges of buying on credit but learn how to manage your finances responsibly to avoid becoming one of millions of consumers who are unable to meet their monthly debt repayments. Stick to the following guidelines and you will keep you and your family well in the black.

1.     Get a life insurance quote and buy life cover to make sure that your family has the funds they need to pay off your debt
        in the event of your death

2.     Disablement cover and dread disease cover will also give you the financial protection you need to continue paying off your
        debts if you are ever disabled or fall seriously ill

3.     Plan and budget for debt repayments before taking out any loans. This means that you will always have funds available to
        make your monthly debt repayments

4.     A basic rule of thumb is that your debt repayments should not be more than 30% of your disposable income. Disposable 
        income is what remains of your income after taxes have been deducted

5.     Never use your credit card to cover daily living expenses

6.     Always make your repayments on time: you will save on interest and maintain a good credit rating

7.     Save on interest and try to pay a little extra towards your debt repayments every month

8.     Always try and negotiate a good interest rate with your bank

9.     If for some reason you are unable to make a debt repayment on time, make an alternative payment arrangement with
        your creditor

10.   Read all loan agreements carefully before you sign. If necessary get input and advice from a financial advisor.

With a life insurance policy from 1Lifedirect you know that your family will not be burdened with your debt in the event of your death.  We promise simple, easy, life insurance with no paperwork or brokers required and savings of up to 22% on your life insurance premiums. Get a life insurance quote from 1Lifedirect today.

Used responsibly, debt can be used to build the dream life you want for yourself and your family, but only if it is managed with care. If you find that your debt has become unmanageable do not hesitate to seek debt counselling. It is never too late to get the help you need to bring your finances back on track.