Avoid loan sharks. ~ Shutterstock
Your home loan
* Your home is an investment,
which over time grows in value. (Yes, the property market has been slow
lately, but even with such blips, over the period of your bond, the value
will rise substantially.)
* With a bond that gives you
access to funds, you have an emergency facility for times of need. (This,
however, can turn the home loan from good to bad if overused!)
*You can use your home as
security for another secured loan.
* In many cases, the
interest rate rises if you take a longer time to pay it back.
* The total cost of running
a car is not the repayment, or the repayment plus petrol: you need to
factor in insurance and maintenance as well. The average total cost for a very
ordinary car is now well over R6 000 a month.
If you are considering taking out a loan with a loan shark,
or if you know of anyone – family, friend, colleague or employee – who is considering
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