Interest Rate Increase

Dear people.

if a 0.25% increase in the interest rate is going to break you, you might need to re-evaluate your finances.

If the interest rate of R 1 000 000 home loan @ 9% (now 9,25%) over 20 years was R 8 997, it is now R 9 159. Difference is R162
On a car loan of R 350 000 @ 9% (now 9,25%) over 60 months, it is R 43 increase.

That is a total of R205.

And also remember, if you are close to the debt rescue point, it ain't going to go better. The interest rate is going to go up, up and up
 
Last edited:
creeper said:
Dear people.

if a 0.25% increase in the interest rate is going to break you, you might need to re-evaluate your finances.

If the interest rate of R 1 000 000 home loan @ 9% (now 9,25%) over 20 years was R 8 997, it is now R 9 159. Difference is R162
On a car loan of R 350 000 @ 9% (now 9,25%) over 60 months, it is R 43 increase.

That is a total of R205.

And also remember, if you close to the debt rescue point, it ain't going to go better. The interest rate is going to go up, up and up
Click to expand...
Pensioners relying on savings are going to be happy! ;)
 
:(

Looks as if I am leaving the motor industry at just the right time!

Currently, the only way South Africans can continue to pay ridiculous prices for new cars is on HP - achievable on a low interest rate, but with our blessed government taxing everything to hell and gone, (21% on a new car before VAT), Fuel and anything else that they think might bring in more revenue to fund the Gravy Train - the average man in the street is going to stop buying new, and if rates go up again, we are down to cash deals only.

Very sorry state of affairs...
 
creeper said:
Dear people.

if a 0.25% increase in the interest rate is going to break you, you might need to re-evaluate your finances.

If the interest rate of R 1 000 000 home loan @ 9% (now 9,25%) over 20 years was R 8 997, it is now R 9 159. Difference is R162
On a car loan of R 350 000 @ 9% (now 9,25%) over 60 months, it is R 43 increase.

That is a total of R205.

And also remember, if you are close to the debt rescue point, it ain't going to go better. The interest rate is going to go up, up and up
Click to expand...

R 205 is quite a few beers! :erm:
 
Fazda said:
:(

Looks as if I am leaving the motor industry at just the right time!

Currently, the only way South Africans can continue to pay ridiculous prices for new cars is on HP - achievable on a low interest rate, but with our blessed government taxing everything to hell and gone, (21% on a new car before VAT), Fuel and anything else that they think might bring in more revenue to fund the Gravy Train - the average man in the street is going to stop buying new, and if rates go up again, we are down to cash deals only.

Very sorry state of affairs...
Click to expand...

Car rental is an option......o....wait.....:whistle:
 
Fazda said:
:(

Looks as if I am leaving the motor industry at just the right time!

Currently, the only way South Africans can continue to pay ridiculous prices for new cars is on HP - achievable on a low interest rate, but with our blessed government taxing everything to hell and gone, (21% on a new car before VAT), Fuel and anything else that they think might bring in more revenue to fund the Gravy Train - the average man in the street is going to stop buying new, and if rates go up again, we are down to cash deals only.

Very sorry state of affairs...
Click to expand...

Start a R 699,00 a month car ponzi :D
 
A step in the right direction. And when overseas rates do eventually increase, as they must, then SA's will have to keep up
 
MickeyD said:
Define savings? (include investments and the term "saving to plan for your future" in this...)
Click to expand...

Savings to me mean money I made during my working life but did not spend it. With this money I bought houses, stocks and shares, and with the income from these investments, no longer have to work for a living. It did not come in the last 5 years either, I started thinking about it at 25. Compound interest is your friend
 
chrisc4290 said:
Savings to me mean money I made during my working life but did not spend it. With this money I bought houses, stocks and shares, and with the income from these investments, no longer have to work for a living. It did not come in the last 5 years either, I started thinking about it at 25. Compound interest is your friend
Click to expand...
Correct... I started 30 years ago! :)
 
If this is gonna make you sweat, I got bad news for you...

Expect to be back at 12% in the next 2 years, thanks to lax credit barriers and unregulated micro-lending happening in South Africa.

Its funny how the poor are hurting the middle class by spending money they don't have.
 
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