As we step into the new year, many of us set goals to improve our lives, whether it’s getting healthier, pursuing career aspirations, or achieving financial stability. For South African homeowners, managing the rising cost of living in 2025 is an essential resolution to keep at the forefront of their minds.
Stay ahead of the game
The high cost of living, stationary lists, and the seemingly never-ending "Januworry" have stretched many household budgets. While some may only need minor adjustments to their spending habits, others could benefit from reaching out for professional advice before their financial situation becomes critical.
To avoid financial stress in 2025, homeowners should take a realistic look at their finances to ensure they can keep up with their home loan repayments and other debts. Acting early is key to preventing the situation from spiraling out of control. The sooner you act, the better your chances of turning things around and starting afresh.
Communicate with your bank
If the situation has reached critical status you need to be proactive and immediately communicate with your bank. A common fear among homeowners is that reaching out to their bank will immediately lead to repossession. However, this is rarely the case. Banks prefer to work with homeowners to find solutions rather than repossessing properties. Repossession is not beneficial for the bank, as they would rather see the client continue paying off their debt over time.
To help struggling homeowners, banks can offer several options, such as:
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Rescheduling or restructuring debt
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Repayment arrangement options
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Extending the loan term from 20 to 30 years
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Listing the home on the bank’s distressed property program
By communicating openly with your bank, you open the door to tailored solutions that can help you regain control of your finances.
Selling to start fresh
In cases where the financial strain is too great, selling the property through the bank’s distressed sales program can be a viable option. This does not involve an auction or selling without the owner’s consent. The bank collaborates with agents to set a fair price, and the homeowner must approve the sale before it proceeds. This approach can provide homeowners with the opportunity to cover their debts and start again with a clean slate.
Seek professional advice
If you’re unsure about the next steps, consulting a professional debt counsellor can provide clarity. A debt counsellor can help review your finances and propose a repayment plan to creditors if necessary.
Acknowledging the need for help is a sign of strength, not weakness. Times are tough, and it’s commendable to take action rather than silently sinking into debt. Ultimately, it’s in nobody’s best interest for a homeowner to fall behind on repayments.
Take charge in 2025
Here are 11 things you can start doing today to lower your bills, secure better deals, and begin working toward your financial goals.
Lifestyle changes
- Cut those multiple subscriptions - if you are looking at an easy way to add some moolah back into the bank then cutting multiple subscriptions to streaming services could be the answer. Do you need more than one option for television shows and movies? Stick to one service that offers you your favourite shows or sporting events. This goes for memberships you no longer use or that can be replaced - for example, if you are using the gym only for their squash court, find out about cheaper options in the community where there are squash courts. If you haven't gone to the gym in a while and you are not going to do so in the next month, cut it and find other forms of exercise that you like and fit your lifestyle and wallet.
- Prepare Your Meals – It costs nearly five times more to have a meal delivered than it does to cook it at home. And home cooking doesn’t just save money; it’s healthier, cuts down on calorie consumption, and can offer a fun activity for families to do together. This goes for preparing packed lunches instead of buying takeaways daily - even buying a pie from the petrol station adds up over time.
- Plan your menu – Meal planning is deciding before you shop what you and your family will eat for breakfast, lunch, and dinner. It can help you lower your overall food bill, eliminate waste, and minimize impulse purchases. When possible, buy produce that is in season, and utilize nutrient-rich but inexpensive protein sources like eggs, beans, and canned tuna.
- Shop for deals and discounts – Always check store catalogues online and in-store for deals or discounts they might have on essentials. If you spot a good deal on cleaning products or non-perishable items, stock up.
In and around the home
- Check on your home insulation – Proper insulation will ensure that your home needs less heating or cooling which turns into lower electricity bills. With news of electricity hikes in the future and cooler months not that far away, now would be a good time to ensure your insulation is still sufficient and in good condition. Also, check all windows and doors for proper seals, heat escaping through the cracks will drive electricity costs up during the winter months.
- Use less hot water – After heating and cooling, hot water accounts for the second-largest energy expense in most homes. To cut back, repair any leaks or dripping faucets, install low-flow fixtures, only run your dishwasher when full, and wash clothes in cold water when possible.
- Lower your overall water consumption – To decrease your water usage, take shorter showers, and turn off the sink while you brush your teeth and wash your hands. If you don’t have a low-flow toilet, retrofit your current one with a toilet tank bank or fill cycle diverter. And irrigate your lawn in the morning or evening to minimize evaporation.
- Save electricity around your home – Save electricity by shutting off your computer at night and installing energy-efficient LED light bulbs. You can minimize standby or “vampire” power drain by utilizing power strips and unplugging idle appliances.
- Get dirty and plant a garden – You can save even more on produce by growing it yourself. If you have space in your garden, start-up costs are relatively minimal. Gardening can be a rewarding and enjoyable (not to mention delicious) hobby for the whole family. Even container gardening could replace some of your basics like tomatoes, beans, herbs, and spices.
Finances
- Pay off small debts first – Take a look at the debts you have and determine which debts you can pay off in a month or two, use the extra money that you have after paying off that debt and push into the next payment to pay it off faster. The quicker you can pay things off the more money you will have in the budget.
- Tracking your budget – One of the most effective ways to reduce household expenses is to set a budget—and stick to it. A budget can help you see where your money is going and identify areas where you can cut back. By setting reasonable limits, you’ll be able to reach your financial goals faster.
This year, make it a priority to stay ahead of financial challenges. Whether it’s budgeting more effectively, seeking professional advice, or communicating with your bank, the key is to act decisively. With the right approach, you can turn a difficult situation into an opportunity for a fresh financial start.
Let’s make 2025 the year of financial empowerment—a true “new year, new me” moment.
