Never take a personal loan

D

DrewChan

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Did a quick count on a R50 000 personal loan from nedbank @ 23%, I have made 8 payments of 1917.74.
Total Payed 15341.92

Total off Capital - R4500

#$%# ridiculous

I hate you PERSONAL LOAN 23% my ass
 
I'm in this boat right now. Needed money urgently and Nedbank was the only bank willing to help. Mine's at 18% though and I try to pay at least double every month
 
Wow, Nedbank is really raking it with you guys. I have R66k RPC with Standard bank. 11% interest.
 
Yeah...personal loan is one of the worst financial choices you can make, bar getting married which costs you even more, you must have really needed the money badly to have taken one.
 
I fell into that trap a few years ago. Never again!

Except for the car and house thing...
 
Nedbank only charges me 12%. Its weird, the more you earn the less you pay on interest.
 
The banks aren't here to help you, they are here to milk you.

They lend us money to buy ridiculously priced cars and houses. (Cause who can really afford to buy these things either cash or with a hefty deposit....not me!). They claim to be helping us afford these expensive items. What they don't tell you is that if nobody could afford these items in the first place, their prices would have to drop to more affordable levels (Economics 101 - Supply/Demand). Should this happen they won't make as much money milking you. So in essence they help themselves while they pretend to help you. So when you buy the cars and the houses (or take personal loans to buy other stuff) you get screwed twice... Every credit agreement should come with a free tub of Vaseline!
 
Banks = skelms. 23% is way too high man. You've had it for 6 months right? I'm sure you can negotiate the interest
 
Its times like this im so happy for staff rates... R28k personal loan at 6.5% interest...

But before that sat with car finance at 23%, so i know the pain... wow...
 
Serious_Python said:
The banks aren't here to help you, they are here to milk you.

They lend us money to buy ridiculously priced cars and houses. (Cause who can really afford to buy these things either cash or with a hefty deposit....not me!). They claim to be helping us afford these expensive items. What they don't tell you is that if nobody could afford these items in the first place, their prices would have to drop to more affordable levels (Economics 101 - Supply/Demand). Should this happen they won't make as much money milking you. So in essence they help themselves while they pretend to help you. So when you buy the cars and the houses (or take personal loans to buy other stuff) you get screwed twice... Every credit agreement should come with a free tub of Vaseline!
Click to expand...

I've never seen a bank pretending to be a charity case. Nobody is forcing you to buy that expensive house or car. Also, nobody is forcing you to accept credit.

Would you lend money and not expect some sort of return?

On the high cost of personal loans, these are generally uncollateralized. This means the bank is taking on greater risk and is expecting a greater premium.

If you deem the cost of credit to be too high, don't take it.
 
Out of interest... What would be the best way to borrow R20000 and paying it back over say a year?
 
The installment you pay is about 3/4 of the calculated interest over the period the loan is for. Which means only 1/4 goes into the actual capital owed.

Basically you pay the interest back first, then the capital. If you pay in more money each month, the interest you pay is less since you make a bigger "dent" on the actual capital you're paying back. However, depending on your contract, you might not be allowed to pay in more than the current installment.

If I were you I'd pay off the entire thing immediately/as soon as possible instead of going the entire "distance".

I have a rule of thumb: Can't afford it? Save up till I can, then buy it. If it's life or death I might consider taking a loan, but never again. And by the time I have saved up enough money to buy something cash, the item is most likely replaced with a better version that I was saving for in the first place and/or i decided not to get it and now have a nice little pile of money saved to use on something else.

Money should be kept under your mattress

Banks are ****tards. It started out as a service to keep your money save, then it turned into a business with shareholders and profit margins etc.
 
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