Consolidating debt with fnb
On the other hand, credit cards, store cards and short-term loans incur interest of anything from 21 percent a year to 32 percent over six months.
For this reason, many people use their home loans to finance big-ticket items such as appliances or furniture, making sure they don’t stretch the repayments for such depreciating assets over the term of their bond.
Representative example: All prices include VAT, R20 000 borrowed for 12 months.
Once off initiation fee (capitalized) R 1197, Monthly admin fee R69.00 post 1% VAT increase.
People who apply for a debt consolidation loan are either already financially stressed or in danger of going that way.
And too many mistakenly expect debt consolidation to be a panacea for all their ills – when it’s more like putting a plaster on a serious wound. While that is true, it’s also true that there are savvy ways to deal with debt.
Debt is the symptom of overspending and under-saving.
More often than not, debt consolidation does not address the root problem, he explains.
In most cases it has been proven that, after someone consolidates his credit card debt, the debt grows back.
Speak to your bank before your cash flow is in dire straits and think twice before you consider debt consolidation,” Smit recommends.
As a Category A Consumer, you’ll be covered (either to settle your outstanding obligation in terms of your credit agreement/facility or pay installments towards your credit agreement) in the event of death, permanent disability, temporary disability, retrenchment, unpaid leave or short time.
“Debt consolidation seems appealing because there is a lower monthly payment and a better rate can be negotiated.