Are you in debt?

So no tips other than "I'm not in debt, debt sucks?"

Mmm... totally bums me out I tell you.

Currently paying around R6k for my car. And around R2k for my life insurance/retirement annuities.

Should I try and drop the car? (Its worth less than what I owe on it at the moment which is why I haven't tried dropping it yet)

Is there an option to re-negotiate the repayments with the bank? I've already had the car for almost 2 years. Would they refinance the outstanding amount on another 60 month amount which will push the monthly total down?

Any ideas? I'd like to be debt free ASAP
 
AcidRaZor said:
So no tips other than "I'm not in debt, debt sucks?"

Mmm... totally bums me out I tell you.

Currently paying around R6k for my car. And around R2k for my life insurance/retirement annuities.

Should I try and drop the car? (Its worth less than what I owe on it at the moment which is why I haven't tried dropping it yet)

Is there an option to re-negotiate the repayments with the bank? I've already had the car for almost 2 years. Would they refinance the outstanding amount on another 60 month amount which will push the monthly total down?

Any ideas? I'd like to be debt free ASAP
Click to expand...
I'm no debt expert, but I would say start with your smallest debt first, kill it, then use the money you paid on it to kill the next biggest debt.

For example, I had an Edgars account on which I paid something meager like R70pm on and a credit card that I paid R250 on. Got rid of the Edgars and then paid R320 on the credit card. When that was done I used the R320 extra to kill my second credit card faster. When all my small accounts and cards were done I had about R2500 extra pm to pay on my car.

I now have only 1 credit card, which I never have more debt on than I can pay off in 1 month. All my other accounts are closed.

Also, if you wanna be debt free don't refinance. Refinancing is a great way of keeping yourself in debt for longer. Many people take 30 year bonds, pay off like R100k on it, then feel like a shiny new plasma screen TV and leather couches and refinance their bond. When they hit 60 they still can't really afford to retire and wonder why.

Cars are evil and trap many people. They buy cars that are more expensive than what they really can afford and then want to trade it in every 3 years for a brand new one. In the end they waste 100k's, even millions of rands of money on interest throughout their lifetimes because they want flashy cars.

Personally I'll never buy brand new again, total waste of money IMHO.
 
Credit card debt is the worst, most of the time people who owe credit card companies money have nothing to show for the spent money.

I also don't see why people are willing to spend 50-60% of their salaries on a car, very stupid.
 
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I have a MX bike that costs me R1000pm but the settlement balance is only R29 000 so taking it to the shop tomorrow to sell it and settle the bill as I hardly have time to ride anymore. I have 1 CC with about 3k on it but it pretty much gets paid in full every month so no interest -although I want to bring the limit down to R1000. Bought my bakkie cash and own my place so just rates, water, lights, etc.
 
My debt is under control, look, I could pay it all off, but I choose to have debt.
Debt I can pay off that is.
It helps to make debt for yourself and pay it off.

Now, talk to me a few years back when I had like 5 Vodacom contracts and 2 MTN ones... OMG! I was so in shyte then... now things are ok.
 
feo said:
Thread title pretty much sums up the just of the question.

Let's discuss our debt issues in here. What type of debt (if any) are you in currently? Paying off a house/car/both? Are you saddled with credit card debt? (Jeez, this sounds almost like an infomercial :D)

If you guys don't mind, let's also throw out some numbers. How much do you owe on your debt and how much do you pay towards settling it per month? Also, for how long have you been paying it off?

I feel that by discussing this and looking at debt from other peoples perspectives, it'll give us a better idea of how to tackle debt in our own lives?

Found this on digg today: http://consumerist.com/5059687/reader-pays-off-14330-in-20-months-with-our-tips
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You should've listened to Skinner. :rolleyes:
 
Debt: g/f's car, house, creditcard, insurance (life, property and medical). I don't consider retirement annuity to be debt.

Plan to get rid of the c/c debt ASAP (3 months if possible), so that I can pay extra into the bond or car loan. For me the biggest problem is using the petrol-card. The car and house debt are going to be much much much harder to squash
 
I started the year off with a tidy some of debt but both my wife and I have been responsible and followed our budget rather strictly. Of our combined 50k in credit card debt we are now down to 14k which will be gone by the end of the year. House and cars are paid off as well as clothing accounts.
 
No debt here, thankfully. But the water and lights and rates and tax and petrol and food are not making life that easy.
 
Car
Bike
Credit card x2
Cellphones
Child crèch fees x2
Rent
Bank loan

...mmmm....

Give me more time to think, I think there is more :p
 
So far in debt its not even funny :(
Slowly paying it off though so maybe one day i might start to see the light et the end of the tunnel.. just hope it not the wrong light :p
 
Was in debt, got out of debt, did not like the freedom, so went back to being in debt, atleast my bank manager will miss me if something happens
 
I had a lot of debt at 24, and will NEVER EVER get into debt again unless it is a home loan.. Even my car is bought cash..

I do have a credit card, but pay it in full every month..
 
Natasha H said:
I had a lot of debt at 24, and will NEVER EVER get into debt again unless it is a home loan.. Even my car is bought cash..

I do have a credit card, but pay it in full every month..
Click to expand...

Smartest thing to do. :)

Gee, I hate credit cards.

My will-fu is not strong. So ja. I rather use a Debit card. I don't spend what I don't have.
 
Insurance, cellphones, rent or other expenses aren't really debt though ...

Onlt have my car debt (advised not to pay it off ...) - but cleared everything else with some inheritence that came through. Credit cards were sitting at about R100,000.00 :/

One of the posters said many people have nothing to show with credit card debt?

I - at least - have an amplifer, fancy DVD player, touch sensitive colour screen remote, cool music streamers and media streamers to show for my debt :P
 
I have half of homeloan gf has other half, my car(very very little left to pay)only about R1200pm anyway. credit cardx2 and a HUUUUGE study loan(which i cant afford)
This is all good and well and i can pay these off with ease but its the electricity, rates, taxes, food, telephone, internet, tv, entertainment, daily expenses which make me k*k af these days.
 
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