Needing money for equipment, paying off debt

A Fin24 reader says he is in need of some money. He writes:

I need money to buy equipment and pay debt!

Matthys Potgieter, a debt expert at DebtSafe, responds:

Thank you for your question regarding how to pay off debt and acquire finances for the purpose of buying equipment.

With limited knowledge of your situation we will answer the question on debt and buying equipment separately.

Paying off debt

With regards to paying off your debt: It is not always a good idea to “borrow form Peter to pay Paul”.

When taking out a loan to consolidate debt you will have to understand that most consolidation loans require security.

The best way to pay off debt is to have a look at each account and where you pay the most interest.

With extra cash on hand, pay off the account with the highest interest rate first and then go on to the next account.

Equipment

Acquiring equipment - for example, for business purposes: We will suggest you speak to your bank regarding finance.

Shop around at different banking institutions as well so that you are sure you get the best deal.

Remember, when you take out finance to purchase equipment, that equipment must work for you in order to pay off the debt, but also to grow your company.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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