Are you in debt?

Dolby said:
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
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Ok. Hence the identity of Dolby....

Now I get it.

:D
 
The iDenTiTy of Dolby ... *cough* ;)
 
I am the worst person in the world when it comes to money management. On an average month I spend about R600 more than I earn. The majority of which is debt repayments. Medical bills and an overseas trip (to visit family) got me INTO debt and I'm too stupid & undisciplined with money to get out.

My BF goes mad every month end when he has to hear about my money woes (he is pretty good with money). I keep asking him to take control of my money for me, but the moment his back is turned new shoes miraculously appear in my car :(
 
AcidRaZor said:
Do you reckon its worth it stopping payments on my retirement annuity to save on cash? Or just try and get rid of the car?
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good question!

I am young, have a home loan, no other debt, but in the long run, do you think investing some more money into a second property (or other investment for that matter) will be better than retirement annuity?

Maybe I dont understand it? Pro's con's?
 
AvOk said:
good question!

I am young, have a home loan, no other debt, but in the long run, do you think investing some more money into a second property (or other investment for that matter) will be better than retirement annuity?

Maybe I dont understand it? Pro's con's?
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No. Stay with your retirement annuity. Will one day appreciate the fact that you kept it going strong.

Concentrate on paying off what you can. Now.
 
AvOk said:
good question!

I am young, have a home loan, no other debt, but in the long run, do you think investing some more money into a second property (or other investment for that matter) will be better than retirement annuity?

Maybe I dont understand it? Pro's con's?
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TBH, if I'd had some solid advice when I was much younger, I would not have gotten an RA. Now that I've saved 100's of thousands in it, it doesn't seem wise to stop. But if I hadn't even started, I think it would've been better to put those funds into property or some other form of investment. IMO, RA's are just a less risky form of investment which require less financial discipline. But investing carefully in property, seems to make more sense (and cents!) now.
 
Leveraged up the wazoo this side.
Have a couple properties and partnered in a business.
Took a bit of a hit recently but still not in the red so riding it out... Interesting to see the predominantly conservative approach to debt / economics in this thread, an indication of age might be interesting so see.
 
SlinkyMike said:
Leveraged up the wazoo this side.
Have a couple properties and partnered in a business.
Took a bit of a hit recently but still not in the red so riding it out... Interesting to see the predominantly conservative approach to debt / economics in this thread, an indication of age might be interesting so see.
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What is conservative for you? I actually read the thread and thought joh we south africans are extremly deep in debt :(
Almost everyone mentioned they had a homeloan and and and
 
Vegeta said:
What is conservative for you?
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Good question, I wasn't very clear.

Its mostly the kind of debt - credit cards, motor cars and other 'bad' debt that I find conservative, most posters feel like victims because of their debt.
I don't see anyone mentioning 'good' debt like investments (property for instance - apart from a home loan here and there). I think that if I was to mention a figure as to how much I currently owe most posters would consider me nuts!
Show those same figures to an accountant and you'd get a very different response.

It seems that many of the people who have posted dont really understand that there is such a thing as good debt (and ladies: owing thousands to that 'Jimmy Shoes' bloke is not it!). :p

EDIT: BTW: The chap who is 19 and has a student loan = good debt. You have loaned money and put it toward something that will increase your earning potential in the future, nothing wrong with that.
The whole concept works around creating debt that results in bringing more money in as opposed to creating debt around consumables (groceries on a credit card ...eek!) or depreciating assets (motor car) that you pay interest on but you enjoy no return on investment (or the interest is more than the return).
 
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Vegeta said:
Why do woman do this :mad: jislaaik i have the same problem with the misses.
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That's a pretty sexist comment. I'm female and don't shop impulsively. That's half the trick of getting out of debt. You have to avoid impulsive purchases and delay unnecessary spending until all the debt is paid off. No holidays, expensive clothing/cosmetics, limited entertainment spending, purchase well within your means. Get a car that's practical not to satisfy your desire for faster/better status...buy property that you can afford (you can move to the more expensive suburbs at a later stage) etc. It's all about self-discipline and restricting spending. Make your lunch for work, don't buy lunch every day...

I feel I'm qualified to say this because I have a house (paid off), 2 vehicles (paid off), no credit card debt, no clothing accounts and 6 months worth of salary invested ina money market for emergencies...Once the kids are out of the house there will be enough money to have a decent holiday etc.
 
SlinkyMike said:
It seems that many of the people who have posted dont really understand that there is such a thing as good debt (and ladies: owing thousands to that 'Jimmy Shoes' bloke is not it!). :p
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Pffft. It's Jimmy Choo demmit ...
 
Gazer said:
That's a pretty sexist comment. I'm female and don't shop impulsively. That's half the trick of getting out of debt. You have to ......... Get a car that's practical not to satisfy your desire for faster/better status...It's all about self-discipline and restricting spending.

I feel I'm qualified to say this because I have a house (paid off), 2 vehicles (paid off), no credit card debt, no clothing accounts and 6 months worth of salary invested ina money market for emergencies...Once the kids are out of the house there will be enough money to have a decent holiday etc.
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+1
minus the house and one car.. haha :) And the kids :D
 
Gazer said:
That's a pretty sexist comment.
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I'm terribly sorry and i'm very ashamed of my comment :o
After reading your comment i only have one thing to ask you: "WILL YOU MARRY ME?" :D
 
The most important thing to remember is long-term vs. short-term.

Student loan is ok, build a good credit history.

But if in debt, and digging yourself a deeper hole, by purchasing another property is not a smart way of reducing debt...
 
I have a R490 000 20-year bond on a duplex valued at R800 000. R6128 a month payment. Another R764 on the levy. Renting it out for R3200.

I have a R90 000 Bantam on 5-years loan. Needed something reliable and useful. R2378 a month installment

I ring up R2000 a month on my Virgin CC which I pay off fully at the end of the month. Don't have the internet banking set up on my Capitec debit card yet, so I don't use it that much yet.

R189pm on my cellphone contract. R194pm for tracker on bakkie and uno. R716pm for short term insurance. R389 for 2GB and ADSL line.

You asked. But I don't know how this will help you though :p
 
iDenTiTy said:
But if in debt, and digging yourself a deeper hole, by purchasing another property is not a smart way of reducing debt...
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Often getting out of debt is not the immediate goal per se.
For the sake of argument lets say that the second property is a good deal and renting it will not only cover the cost of the loan but maybe even put a little back in your pocket (which you can the divert to the repayment of your original loan if you choose) - in this context more debt is a very good idea!
Granted this is just for the sake of argument and the reality is often a lot harsher particularly as of the last year or so but in theory this is the point I am trying to make. :)
 
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