Tightning the belt

[JacquesZA]

We all knew the low interest party wont last...

So what if anything are you doing to absorb the current and coming rate hikes?

Im re evaluating my disposable spend ( groceries, etc)

Also relooking my current insurance portfolio to see where there is unnecessary fat.

 

[Messugga]

Nothing. Have a big buffer in my income specifically so that I don't have to cut down when times get tougher. Granted, the only debt I have is a bond which is the wife's responsibility to pay anyway.

 

[genetic]

I have never tightened my beld yet.

 

[Messugga]

I have never tightened my beld yet.

Have you tightned it though?

 

[genetic]

Have you tightned it though?

Hahaha... apparently I have!

 

[HapticSimian]

Have you tightned it though?

Dropping vowls? Is this like Bitcoin? Is it erly enough to get in on the action?

 

[Tango]

My beld don't fit no more!!

 

[Dr Who]

I am lucky when I entered into my Car and 1st home bond I never dropped my payments as the interest rate decreased. Now I have around 1 % buffer before it actually impacts the cost per month.

How ever this is not the case for my 2nd bond..... have not even paid 1 installment yet and we back in an upward cycle. I may just have to start hawking my stuff this year.....

 

[DrJohnZoidberg]

I beld but nobody picked up.

 

[supersunbird]

Shame, it's so rough now, you can even afford a proper belt anymore and have to use a beld.

Anyway, I can cancel discretionary investment debit orders. Not much else I can cut, I'm properly budgeted and don't spend much on luxuries.

 

[GoB]

Fewer prostitutes. Or cheaper ones.

 

[JacquesZA]

Ja ja... Didn't have time to fix the spelling..

Back to topic, those of us who have / had buffers are lucky. I know of a few people who just scraped by.

 

[Electric]

Didn't have time to fix the spelling but you have time to write that?
Go edit the thread title you lazy tnuc.

 

[F1 Fan]

No need to tighten just yet...

 

[Devill]

We all knew the low interest party wont last...

So what if anything are you doing to absorb the current and coming rate hikes?

Im re evaluating my disposable spend ( groceries, etc)

Also relooking my current insurance portfolio to see where there is unnecessary fat.

Entertainment will be managed by less expensive things. Also looking at my insurance as well as buying a bit more in bulk (groceries).

 

[Tango]

Buying in bulk (Makro) does help. Also watching out for specials at the local Supermarkets.

 

[Cius]

We where already putting almost double payments into the bond so the interest rate hike and all the inflation just means we pay more interest each month and now I may have to lower that debit order a bit and pay the bond off a few months later. Actually I'm really glad I built that cushion in as not only have I paid a lot extra into the bond while rates where low (meaning I save even more now that rates are climbing) but also I have a no brainer budget category to cut a little at times like this.

My advice to people is that if you are feeling tight now and are in debt in 2 years time it will probably be worse. Rates are still at record lows and if they go up another 5% where will you be? Its best to cut back lifestyle a bit and move to a cheaper area/school/car/whatever now on your own terms than be forced to later when you are even more indebted.

 

[Mike Hoxbig]

This is why you get a fixed rate loan, even if it's 0.5% or whatever higher than the linked rate that you would have gotten

 

[supersunbird]

This is why you get a fixed rate loan, even if it's 0.5% or whatever higher than the linked rate that you would have gotten

Problem is, often its 2% higher! And in SA Homeloans case they charge a conversion fee!

 

[Mike Hoxbig]

Problem is, often its 2% higher! And in SA Homeloans case they charge a conversion fee!

My home loan is at 9% and car is at 8.5%. You guys need better negotiating skills