Debt is one of the most important topics in personal finance, but is not well understood. Thando from Small Steps to Freedom answers a few questions you may have about debt. If you understand the power of compound growth, you must know that this applies to debt too, but in a negative way.
The longer you take to pay off your debt and the higher the interest rate you are paying, the bigger the cost of that debt is to you. Leaving aside leverage for the moment, ordinary consumer debt has a negative impact on your long term wealth. If you do one thing today, please review your current debt and the cost of that debt.
If you need to take out a loan, please make sure that the company offering to lend you money is registered with the NCA. You can verify whether the provider is compliant by calling the or visiting their website:
https://www.ncr.org.za/register_of_registrants/registered_cp.php
Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals. The views expressed by the contributor are his or her own (as an independently registered financial services provider, financial adviser or other independent capacity), and not necessarily endorsed by Old Mutual (as a separate financial services provider).
Join us on twitter for real conversations about family finances:
- @FamFinanceShow
- @DianaGranoux
Website:
www.familyfinanceshow.com
Subscribe on your favourite podcast platform:
https://podlink.to/FamilyFinanceShow