The good, the bad and the terrible

Mandi Smallhorne
2013-05-14 09:53
Post a comment 0
Loan sharks,debt 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.

Student loans

* 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 this, don’t.

Add your voice on the Debt Issue:

*Ask our experts
*Share a personal story
*Write a guest post

Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.