Okay, so here's my plan, comments appreciated

guest2013-1

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Recently the Rand to the Dirham broke the 3:1 barrier.

It's currently R3.12 / 1 Dirham.

[size=-2]nb, I currently have a 100 000 AED loan of a term 24 months @ 13.5% interest (4789 AED per month)[/size]

So here's the plan (if the bank allows another loan on top of the current one)

200 000 AED over a term of 36 months @ fixed 13.5% interest (6860+- AED per month)
I pay off my car entirely (Which is around R6200 a month, don't ask why, bad choices)

This brings down my monthly expenses in SA to a bare minimum with everything paid off. I need to send over 1500 AED a month (@ R2.05, not the current rate) to be able to cover those instead of the 5000 AED I do now.

My monthly expenses in Dubai doesn't exceed 2000 AED, hell, I live like a king for that money because the only thing I have to worry about is toiletries / food.

This leaves me with approx. 2000 AED left which I will then save.

By the end of the 3 years in Dubai (starting probably from November or December this year and assuming I don't get a pay rise to pay off the debt faster) I will have saved around R147 000 (again, @ R2.05, not taking into account the current rates, but what it was in April of this year)

This will then have paid off all my debt including my car and give me R147 000 odd on my return to S.A

So how does that plan sound? Debt free within 36 months and almost R150k richer.

Or do I fail to see some cosmic truth and I'm blind somehow?
 

spiderz

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Push more money into the debts to pay them off first. The faster you pay them the more you safe on interest. Debt consolidating...makes good sense.
 

Nerfherder

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Push more money into the debts to pay them off first. The faster you pay them the more you safe on interest. Debt consolidating...makes good sense.
+10000

Always pay the debt off first... also don't think of your loan as 300 000 because its actually more like 600 000 with all the interest. Rather push all that money in to the loan, pay it off in a year and then if you still want to stay then send the extra money back to SA for savings.

The longer you have the debt the more you pay, its the no1 rule of finance. Don't save until you clear that debt!
 

thedutchman

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is your loan in SA or dubai ? whats the interest rate in dubai ? would think that its much lower than in SA.. would also suggest to just pay off all your debt asap.. after you have paid that off, you can start saving that money in a money market acc that will also give you 10 % interest..
 

guest2013-1

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Interest rate is indicated (this is fixed) and the loan is in Dubai

I get penalized 3% fee or something for settling my debt early. So thats why I'm not pushing everything into it that I have.

If I stay the solid 3 years I'll end up with savings with more than R140 000. This should then keep me alive in SA while I take some time off and/or start my own thing.

bluenomore said:
blablablabla
Not the same thing luv, thats why I started a new topic. This one contains actual numbers and actual plans.
 

Ou grote

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I thought we advised you on this before? :)
Yes, but now he's trying to solve his problems and not trying to run or whinge about them.

It's very mature, honest and responsible. And sounds like someone with a brain.

(Must be the heat)
 

SYNERGY

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lol @ Alf.

@ Acid: Do you think you can make the 3 years there? Isn't your job stress hectic?
 

thedutchman

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i think you should exactly do what you just said, it sounds like an awesome plan, and who knows, maybe you even get a raise and you'll end up saving even more. good plan, now, start doing it :)
 

PeterCH

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As long as he doesn't fall for one of them Russian or Ukrainian beauties who hang around Dubai looking for a rich bf..... :)
 

thedutchman

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why dont know get yourself a rick dubaien :D ? gf ? :) her dad could sort you out chop chop :)
 

guest2013-1

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Why dont you sell your car?
Short History of Why:
In 2005 I bought a New Astra (that new shape ones)
Out of the Box it gave problems. Took GMSA more than 16 months to fix them. Then once it was fixed my clutch burnt out and caused damage to the gearbox. (This is initially what caused me to go in the red in the first place)

So I was on a maintanence plan and everything was covered (even said so re: the clutch) and GMSA's insurance place replaced the clutch for me for free, but they refused to pay for the gearbox. I just wanted my car back so decided to pay the R17k for the gearbox and get it replaced.

They said it was my fault for "racing" with the car which I never did, normal JHB traffic town driving. Even paid a forensic guy R2k to come out and disprove them, but in his conclusion he said it MAY have been the way I was driving. So based on that (even though he clearly stated it was due to no fault of the driver) they didn't want to replace anything based on the maintanence plan.

GMSA nor the ombutsman has returned any of my calls since.

Insert *spike*.... into my tire, punctured my entire rim. GMSA wanted R9800 for 1 ****ing rim. So I decided to replace all the rims + tires for R6500. (yay for swipey swipey)

Then I started feeling the clutch go again (I drove an Opel Corsa before, also brand new and never had a problem, also note, endless electronic problems etc with the hooter/airbag/seatbelts not working as it should and electric window and radio etc)

So I decided to try my luck and trade it in, and buy something decent. I was shocked to find that the car lost over 60% value in the first 2 years. Cars devalue, I give you that, but even the sales person I spoke to was suprised at how much the car dropped in value.

He agreed to place the shortfal (of around R30k) on top of the car (Which is a 2007 Audi A4 2.0 with Executive package) and a 0% deposit (because at that time I was out nearly R30k due to the Astra)

My settlement amount is R268 000 (odd)
The car can be traded-in/sold for around R183 000

i think you should exactly do what you just said, it sounds like an awesome plan, and who knows, maybe you even get a raise and you'll end up saving even more. good plan, now, start doing it :)
Thanks for the vote of confidence. I reckon its a good idea.

Yes, but now he's trying to solve his problems and not trying to run or whinge about them.

It's very mature, honest and responsible. And sounds like someone with a brain.

(Must be the heat)
Thanks, and no it's not the heat. Actually cooling down, now only 31 degrees and quite pleasant. Just a shame there's a problem with illegal sewage being dumped in storm drains and spilling out on the ocean, else I'd be at the beach. My sister is eventually getting her divorce (has 3 kids) and I reckon I could put my own love life on hold for a few more years anyway to help take care of things and come back stronger.

As long as he doesn't fall for one of them Russian or Ukrainian beauties who hang around Dubai looking for a rich bf..... :)
I earn half of what I should be, but I'm happy because most of my expenses is covered and I'm able to pay back debt. It's just the time it will take thats my problem. But my own **** for another day. Nothing happens over night...

why dont know get yourself a rick dubaien :D ? gf ? :) her dad could sort you out chop chop :)
You have to be introduced usually and the rich ones are looking for something I can't offer. And "chop chop", thats what my peepee would be getting if I **** around. So I'd rather keep my head down, marrying rich is not the answer.
 

Ou grote

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Why don't u ever post pics of Dubai in your gallery?
Would be interested to see how it "really" looks.
 

guest2013-1

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Why don't u ever post pics of Dubai in your gallery?
Would be interested to see how it "really" looks.
Never really took the time to take pictures. I get in work in the mornings and I usually only leave when its night out. Weekends same thing.

I'll try and make a point of doing a "what the eye sees" in Dubai thats not a bunch of marketing bull**** to lure more tourists here. Could be a good way to pass the time
 

Ou grote

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Never really took the time to take pictures. I get in work in the mornings and I usually only leave when its night out. Weekends same thing.

I'll try and make a point of doing a "what the eye sees" in Dubai thats not a bunch of marketing bull**** to lure more tourists here. Could be a good way to pass the time
Just post a message on my profile when u do.

I get lots of those Dubai pics in emails and wonder what its really like.

I can post great pics of Cape Town if I want to, but its only when u go to a place that u really see whats up.

Should be enough space for a 100 or so pics in your gallery. Just make a new nick if u need more.;)
 
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