Budgeting tools
Monthly budget template to get out of debt
By Lerato Molefe · 6 min read · Updated 24 June 2026
A monthly budget to get out of debt lists every rand of income, subtracts your essential living costs, and shows exactly how much is left to put toward your debts, which is the single most useful number you can work out because it tells you what you can honestly offer creditors. This template gives you the categories and a worked example to copy.
The goal is not a perfect spreadsheet; it is an honest one. Use your actual bank statements for the last two or three months so your numbers reflect what you really spend, not what you hope to spend.
Once you know your spare amount, you can use it to make realistic repayment proposals to creditors. If your essentials and minimum debt payments already exceed your income, that is a clear sign the maths does not work without help, and it is time to speak to an NCR-registered debt counsellor.
The copy-paste budget template
Copy this into a notebook or spreadsheet and fill in your own figures. Use monthly amounts.
MONTHLY BUDGET
INCOME (after tax)
Salary / wages R[__________]
Second income / side work R[__________]
Grants / other income R[__________]
A. TOTAL INCOME R[__________]
ESSENTIAL EXPENSES
Rent / bond R[__________]
Utilities (water, lights) R[__________]
Groceries / food R[__________]
Transport / fuel / taxi R[__________]
School fees / childcare R[__________]
Insurance / medical aid R[__________]
Phone / data R[__________]
Other essentials R[__________]
B. TOTAL ESSENTIALS R[__________]
MINIMUM DEBT PAYMENTS
Loan 1 R[__________]
Loan 2 R[__________]
Credit card R[__________]
Store accounts R[__________]
Other R[__________]
C. TOTAL DEBT PAYMENTS R[__________]
SUMMARY
Income (A) R[__________]
less Essentials (B) R[__________]
less Debt payments (C) R[__________]
= AMOUNT LEFT OVER R[__________]
A worked example
Here is the template filled in for an example household, to show how the numbers come together. Your figures will differ.
| Item | Monthly amount |
|---|---|
| Salary (after tax) | R18,500 |
| Side work | R1,000 |
| Total income (A) | R19,500 |
| Rent | R6,500 |
| Utilities | R1,200 |
| Groceries | R3,800 |
| Transport | R1,800 |
| School fees | R1,500 |
| Insurance and medical | R1,400 |
| Phone and data | R600 |
| Total essentials (B) | R16,800 |
| Personal loan | R1,200 |
| Credit card minimum | R900 |
| Store accounts | R700 |
| Total debt payments (C) | R2,800 |
| Amount left over (A - B - C) | -R100 |
In this example the household is R100 short every month even before anything unexpected. That negative number is the warning sign: there is no spare cash to offer creditors, and minimum payments are already unaffordable. This is exactly the situation where debt review, which lowers instalments and interest, is worth investigating.
How to use your spare amount
If your summary shows a positive amount left over, that is your firepower for getting out of debt. You can put it toward your debts using one of two strategies: the snowball (clear the smallest balance first for quick wins) or the avalanche (clear the highest-interest debt first to save the most money). A debt snowball tracker helps you plan and follow either one.
When you make repayment or settlement offers to creditors, base them on this real spare amount. An offer grounded in a budget you can show is far more credible than a guess. Keep a small buffer back rather than promising every last rand, so one surprise expense does not break your arrangements.
When the budget shows you cannot cope
If your essentials plus minimum debt payments are more than your income, like the worked example above, no amount of trimming the small stuff will fix it on its own. That negative result is the most important output of the whole exercise, because it tells you the truth: you are running at a loss and the gap is being filled by more debt, late payments or going without essentials.
At that point, the honest next step is to get help. An NCR-registered debt counsellor will redo this affordability calculation formally and, through debt review, can reduce your instalments and interest into a single payment you can actually make, with legal protection against creditor action while the plan runs. Remember the trade-offs too: debt review flags your credit profile while it runs and you cannot take new credit until you finish and get your clearance certificate.
Frequently asked questions
How do I make a monthly budget?
List all your after-tax income, subtract your essential expenses, then subtract your minimum debt payments. The amount left over is what you can put toward clearing debt. Use your last two or three bank statements so the numbers are honest.
What should I include as essential expenses?
Rent or bond, utilities, groceries, transport, school fees or childcare, insurance and medical aid, and a basic phone and data allowance. Essentials are what you genuinely need to live and work, not discretionary spending.
What if my budget shows a negative number?
A negative result means your essentials and minimum debt payments already exceed your income, so you cannot cover everything. That is a strong sign you should speak to a debt counsellor about debt review, which lowers instalments and interest.
How much should I put toward debt?
Put as much of your leftover amount as you can sustain, keeping a small buffer for surprises. Then use a snowball or avalanche approach to attack the debts in order, and base any creditor offers on this real number.
Should I budget using actual statements or estimates?
Use actual bank statements for the last two to three months. People consistently underestimate what they spend on groceries, transport and small purchases, so real figures give you a budget you can trust.
Can a budget alone get me out of debt?
A budget is essential, but if the maths simply does not balance, budgeting alone will not fix structurally unaffordable debt. In that case debt review or another formal solution is needed to reduce what you owe each month.
How is this different from a household budget worksheet?
This template focuses on finding the spare amount available for debt repayment. A household budget worksheet covers your full household spending in more detail. Many people start with the budget here, then build out a fuller worksheet.
