Growing debt

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kaspaas

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Tito Mboweni threatens to increase interest rates again - due to the rapid pace at which debt is growing which he reckons fuels inflation.

What it the reality in your case? Have you increased you debt this year, or reduced it?

How do you deal with the increases in fuel and food costs?
 
My debt has taken a knock downward - I consider reducing debt (mostly home bond) as a very efficient way of saving.

I did not increase my credit card limit.

Car has be paid, and maintenance costs are still well below the monthly installments of something very small.

Fuel and food are taken care of by reducing beer consumption and eating out etc.
 
its hard to decrease on your debt, when everything around you simply costs more and more each month. Ranging from Food to petrol.

Taxes just keep on going up.

Best way to combat debt. Is rather to have none at all. Rather live with what you have.

If you have extra money or saved up for a Item or maybe pc upgrade or whotnot, then go buy it cash :>


Personally i don't believe in credit cards and loans etc.

I has no debt <--- FTW
 
kaspaas said:
Tito Mboweni threatens to increase interest rates again - due to the rapid pace at which debt is growing which he reckons fuels inflation.
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New mortgages down, car sales down, retail sales down - to me this is indication that the current interest rates are having the desired effects of cooling rampant spending. People are tightening their belts and are spending on necessities. However, debt has increased. I don't necessarily see greater debt equalling greater inflation if this is the case. I could understand increasing interest rates if the purpose was to dampen the "spend today, pay tomorrow because I must have a better TV now", type attitudes. But increased debt might be explained by desperate measures to prevent your house or car from being reposessed. A great deal of current inflation is fueled by factors beyond consumer control. I think Tito has gone far enough and any further hikes could tip us into a recession. Increasing the interest rates can also fuel inflation. Higher interest rates might discourage businesses from taking on new debt. However, they will pass their increased debt servicing costs, on their existing debts, by increasing their prices to the consumer.
 
debt :sick:

lets see

home loan - ok, up-to-date, normally behind

credit card A - Maxed but I reduced limit
credit card B - Maxed
credit card C - Almost paid up
credit card D - Paid up
credit card E - Paid up
credit card F - Almost paid up
edit almost forgot credit card G - paid up

Edgars card - not much owing, paid on time
Woolworths card - as above

Car 1 paid up
Car 2 paid up
 
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My accounts all balance positve except my S2000 loan....

The reason everyone is getting more and more in debt is because the interest rate keeps going up, the petrol goes up, the food goes up, etc.. idiot... its not like everyone wants to be in debt.
 
The only debt I have is hy homeloan, Amount owed is getting less but it's costing me more with rates going up :(
 
Toko said:
The only debt I have is hy homeloan, Amount owed is getting less but it's costing me more with rates going up :(
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This is the crux of the matter - outstanding debt increases in line with interest rate hikes in order to reduce new debt from being taken out.

It is almost impossible to decrease outstanding debts when interest rates go up at every single MPC meeting.
 
I changed jobs, and used my provident fund and untaken leave payout to pay off my car, my credit cards and overdraft, and other debts. The balance goes into my bond, my sole remaining debt. This has helped enormously on a monthly cash flow basis; things were getting very tight.
 
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