Guiding consumers since 2009

When the going gets tough

By Staff Writer
Inflation is down, it is at the lowest it has been for a while and the Reserve Bank target range of 3-6 percent is looking increasingly close. The policy on inflation has been one of targeting interest rates. The Repo rate is 7.5%, this is the rate at which the Reserve Bank lends to the commercial banks at. They then tack on a profit margin and lend to the consumer. This is the Prime rate and it is 11% although this can be negotiated especially with a homeloan. So inflation is looking better but what else can you do to survive the recession?

 

 

When the going gets tough, the tough get going. There are many places where you can save yourself a bit of cash. Your homeloan could be re-negotiated to take advantage of lower interest rates and save you on what you have to pay out every month. A balance transfer credit card enables you to pay off your credit card debt at a lower rate, sometimes saving you up to half of your interest bill on your existing cards. The thing with a balance transfer card though is that all new purchases get charged at the regular higher rate of interest, so you can't spend anything on them. As a vehicle for paying off your credit card debt they are great as long as you can curb the swipe impulse.

Medical aid is seen as a must have purchase and many people spend a significant part of their income on medical aid, but the medical aid market is quite competitive with the medical aid providers constantly looking for new customers. This means that if you compare medical aid schemes you can often find major savings that will help you get going and free your personal finances up. Interest rates may not come down again anytime soon, so do what you can now to shave a few savings from your existing payments. Get a better bond, pay your credit card off cheaper and find a medical aid that gives you the security without the price.

Recent Articles

Featured Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Check the interest before you take a loan

Justmoney takes a look at what influences the interest rate on a personal loan, the difference between secured and unsecured loans, and its impact on the interest rate.

One retirement, so many funds – pick the right one

Saving for retirement should be one of your priorities. However, it can be confusing to choose between a pension fund, provident fund, preservation fund, or a retirement annuity if you’re not familiar with them.

Which funeral cover lays your worries to rest?

A funeral can be as expensive as R50,000, depending on the type of funeral you want. That is why purchasing funeral cover is important. However, you don’t have to accept every offer that is put on the table. Shopping around can save you a large amount of money.

Deals

Telkom August Big Deal

Price: R249 per month
When: Until 31 August
Where: Nationwide

KFC Streetwise Winter Treat

Price: R99
When: Until 30 August
Where: Online

20% off for Nedbank cardholders at aha hotels

Price: Available on request
When: Daily
Where: Nationwide