How would you handle these repayments

DrewChan said:
sssshhhh you weren't supposed to work that out :P, I <3 my company ^_^
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/off topic

You work in Cape Town by any chance? Southern Suburbs?

/on topic

funny I saw this thread now. I am in the process of cleaning things up as well. Things are only going to get worse these days, and having any amount of debt hanging around is simply not a good idea!

I met with my banker this afternoon, and it was such a helpful session. The one loan that I took out aaaaages ago was 29%. How hectic is that!?!? :sick:

Also, one thing I want to point out is that revolving credit loans from Standard Bank are now lower interest than a credit card.

13% vs 15% Thats quite a big difference!
 
techead said:
/off topic

You work in Cape Town by any chance? Southern Suburbs?

/on topic

funny I saw this thread now. I am in the process of cleaning things up as well. Things are only going to get worse these days, and having any amount of debt hanging around is simply not a good idea!

I met with my banker this afternoon, and it was such a helpful session. The one loan that I took out aaaaages ago was 29%. How hectic is that!?!? :sick:

Also, one thing I want to point out is that revolving credit loans from Standard Bank are now lower interest than a credit card.

13% vs 15% Thats quite a big difference!
Click to expand...


Wow since when did loans go to the 13% mark, even in the last 2 years - every loan I have gotten has been 23% and up, highest being 32% (thank you absa)

If thats valid some sort of consolidation loan on the remaining R25000 may be in my interest

/PS yes CT, not Southern Suburbs, but not mentioning my company lest I get in trouble - but why do I think I know which company you are talking about lol
 
DrewChan said:
Wow since when did loans go to the 13% mark, even in the last 2 years - every loan I have gotten has been 23% and up, highest being 32% (thank you absa)

If thats valid some sort of consolidation loan on the remaining R25000 may be in my interest
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that is exactly what I have done! you sound like you earn more than me, so you might get an even better rate. Maybe even 12% or 11% if you lucky.

They generally charge much higher when the client is a "high risk" client and a lower earner. So they pump on the interest to cover the higher risk of the client
 
techead said:
that is exactly what I have done! you sound like you earn more than me, so you might get an even better rate. Maybe even 12% or 11% if you lucky.

They generally charge much higher when the client is a "high risk" client and a lower earner. So they pump on the interest to cover the higher risk of the client
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I think you overestimate what I earn, my bonus is way bigger than one would expect on my salary band ^_^, but I guess I can hope re consolidation - Who did you go through if I may ask.

Problem is no property to put up as security.

Or I could just pump bonus in and pay the whole amount of over 6 months meh
 
DrewChan said:
I think you overestimate what I earn, my bonus is way bigger than one would expect on my salary band ^_^, but I guess I can hope re consolidation - Who did you go through if I may ask.

Problem is no property to put up as security.

Or I could just pump bonus in and pay the whole amount of over 6 months meh
Click to expand...

Consolidation only works on secured debt (not unsecured / microloans). Otherwise it may reduce your monthly installment, but your interest rate could be at that 32% mark
 
Make sure that you can pay that car loan off early without penalty first. If you can then do it.

Otherwise clear the store accounts and CC.
 
UnUnOctium said:
Approximate algorithm for extraordinary repayments, in descending order of priority.

0. Always compound interest first, the 3 below:
1. Highest interest rate & highest outstanding amount (e.g. large personal loans, big credit card debts)
2. Highest outstanding amount & approximately same interest rate (e.g. large loans with low rates, e.g. student/bond)
3. Highest interest rate & approximately same outstanding amount (e.g. credit cards with small outstanding amounts)
4. Simple interest loans (e.g. car)
Click to expand...

+1
 
0. Always compound interest first, the 3 below:
1. Highest interest rate & highest outstanding amount (e.g. large personal loans, big credit card debts)
2. Highest outstanding amount & approximately same interest rate (e.g. large loans with low rates, e.g. student/bond)
3. Highest interest rate & approximately same outstanding amount (e.g. credit cards with small outstanding amounts)
4. Simple interest loans (e.g. car)


1 - Combines 2 variables, "Interest and Outstanding amount", I have high interest high amount, and "higher interest" lesser amount.

How would one prioritise by those categories
 
DrewChan said:
0. Always compound interest first, the 3 below:
1. Highest interest rate & highest outstanding amount (e.g. large personal loans, big credit card debts)
2. Highest outstanding amount & approximately same interest rate (e.g. large loans with low rates, e.g. student/bond)
3. Highest interest rate & approximately same outstanding amount (e.g. credit cards with small outstanding amounts)
4. Simple interest loans (e.g. car)


1 - Combines 2 variables, "Interest and Outstanding amount", I have high interest high amount, and "higher interest" lesser amount.

How would one prioritise by those categories
Click to expand...

All 3 do, it's just the magnitudes that are being compared and the relative difference :p

Example, R80k outstanding at 19% would be #1, R 80k at 17 % would be #2 and R60k at 18.5% would be #3
 
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