Good debt leads to increases in earnings or growing value in assets. Education is a good debt, because it increases your employability and then, within your chosen occupation, it increases your ability to earn money. Another good debt is buying property.
How is your credit rating determined? Your Credit Bureau score is calculated using a formula that evaluates how well or how badly you pay your bills, how much debt you carry and how all of that stacks up against other borrowers. The lower your scores, the less you stand a chance of obtaining a loan or other financing.
Is all debt bad? To answer that question, we need to consider two concepts:
- What is the cost of debt?
- What is the reward to be gained as a result of that debt?
If you are prepared to enter into debt to purchase a pair of shoes valued at R10 000, the reward will be that you are the envy of many of your friends. Is this reward worth R10 000, plus interest on the debt? Continue reading “Is all debt bad?”
Going through a divorce can have devastating effects on your emotions, your children and your life in general. When a couple decides to separate, they are often unprepared for both the emotional and financial outcomes which follow.
If you are currently going through the process of separating from a partner, the months ahead will be filled with many changes and challenges. The following might aid in coping with your process: Continue reading “Surviving Divorce By Planning for Financial Success”
South African law states that a credit provider should conduct a detailed financial assessment of their potential consumer/s prior to entering into a credit agreement. If the preceding dealings between the consumer and credit provider are not handled in accordance to the laws set out by the National Credit Act 34 of 2005, the client could fall victim of Reckless Lending.
Have you ever opened your credit card statement and wanted to kick yourself over all the money you spent?
Maybe you’ve sat down and counted all the unnecessary items you bought this year and wish you could have saved that money for a holiday or put it away for a rainy day – or maybe you just can’t figure out why you’re not able to save enough each month…
Chances are, like millions of people around the world, your spending habits are the cause. Continue reading “Spending habits – how we learn them and how they can be changed”