Another Debt thread

Man, all we can conclusively prove about this thread is that IT guys are averse to credit, lol. Also it probably helps that in the IT industry you earn *huge* salaries compared to 80% of South Africans (where salaries peak at R15 000, not start there!), so there's no need for credit.

To the people with R4000 on their credit card, that's like saying you've got no credit. Your average Sandtonite can drop more than R4000 on a new pair of high heels and some designer shades, no problem, on any one of their numerous cards.

THOSE are the people I'd like to hear from, because those'd be the more interesting stories.
 
Foxhound5366 said:
Man, all we can conclusively prove about this thread is that IT guys are averse to credit, lol. Also it probably helps that in the IT industry you earn *huge* salaries compared to 80% of South Africans (where salaries peak at R15 000, not start there!), so there's no need for credit.

To the people with R4000 on their credit card, that's like saying you've got no credit. Your average Sandtonite can drop more than R4000 on a new pair of high heels and some designer shades, no problem, on any one of their numerous cards.

THOSE are the people I'd like to hear from, because those'd be the more interesting stories.
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Start a poll?
 
Sinbad said:
Start a poll?
Click to expand...

You're disagreeing that IT guys are paid more and therefore generally have less need for credit, which might explain the trend of relatively low debt levels expressed here (I presume it's not just because y'all are so self-controlled)?

As for polls, you'd have to ask rpm to start one, close it two hours later, and release definitive results ;) Because that's justice, here and at the Salem Witch Trials.
 
A good few mill in debt at the mo. Just want to point out that debt is not too much of an issue if you have structured it correctly. In the interim I'm drowning in debt trying to pay x2 bonds and x2 cars and building onto a new house, I'm down to rice crispies for brekkie, lunch and supper.
That said, my old bond is a house I capitalized on 12yrs ago and the rental from that house will pretty much pays for its own bond and 1/3 of my new bond when I move into new place, having someone else pay for the majority of your debt is the best debt.
 
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Spotja said:
One hell of a dog(s) you got there
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One episode of kennel cough = R1000 per dog for consults and meds. Various injuries also add up.
Annual vaccinations = R500+ per dog and R400+ per cat
3 dogs, 2 cats.
 
Foxhound5366 said:
You're disagreeing that IT guys are paid more and therefore generally have less need for credit, which might explain the trend of relatively low debt levels expressed here (I presume it's not just because y'all are so self-controlled)?

As for polls, you'd have to ask rpm to start one, close it two hours later, and release definitive results ;) Because that's justice, here and at the Salem Witch Trials.
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Pretty sure my unsecured debt was about the highest listed here ;)
 
Sinbad said:
One episode of kennel cough = R1000 per dog for consults and meds. Various injuries also add up.
Annual vaccinations = R500+ per dog and R400+ per cat
3 dogs, 2 cats.
Click to expand...

Dogs and cats are expensive beasts to keep.

I'm sure your food bill a month for the beasts isn't too small either.
 
15k credit card
32k loan to upgrade my dads house
4k clothing accounts
2years that's my plan, am currently being choked by this stuff
 
I once read a bit of advice that seems relevant to this thread: the best return on investment you'll ever get is paying off your debt first, rather than diverting some of that money into long-term saving. This is because short-term debt carries interest up to and above 20% regularly, while investments seldom return too much above 10%.

By paying off debt you're effectively 'earning back' the money you'd have paid in interest on credit, which outperforms the return you'd have gotten by investing the same money into shares or whatever (and keeping the debt).

What are your thoughts on that? Does that sound about right?
 
Foxhound5366 said:
I once read a bit of advice that seems relevant to this thread: the best return on investment you'll ever get is paying off your debt first, rather than diverting some of that money into long-term saving. This is because short-term debt carries interest up to and above 20% regularly, while investments seldom return too much above 10%.

By paying off debt you're effectively 'earning back' the money you'd have paid in interest on credit, which outperforms the return you'd have gotten by investing the same money into shares or whatever (and keeping the debt).

What are your thoughts on that? Does that sound about right?
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Simple answer - correct.

Less simple answer - Not necessarily. For instance, you you take money out of your bond at say 9% to invest in a business opportunity that potentially returns a lot higher, then it makes sense to do that based on your risk appetite.
But if you're faced with the choice between paying off your short term debt and investing in savings/money market/shares etc, then do the debt first. The return on that is guaranteed, unlike on the stock market.
 
Sinbad said:
Simple answer - correct.

Less simple answer - Not necessarily. For instance, you you take money out of your bond at say 9% to invest in a business opportunity that potentially returns a lot higher, then it makes sense to do that based on your risk appetite.
But if you're faced with the choice between paying off your short term debt and investing in savings/money market/shares etc, then do the debt first. The return on that is guaranteed, unlike on the stock market.
Click to expand...
On the flip-side you could lose your job tomorrow then you'd have debt AND no money :twisted:
 
7k on the CC from the last month. I'll pay it off at the end of the month. Managed to get rid of 50k CC debt in the past 5 months by cutting down on food, booze and cigarette bills.
 
JimmyRott said:
7k on the CC from the last month. I'll pay it off at the end of the month. Managed to get rid of 50k CC debt in the past 5 months by cutting down on food, booze and cigarette bills.
Click to expand...

You going to apply it to saving now?
 
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