Ask an expert
Question

31 May 2011

Need financial advise please
Good day, I need financial advise please.

I have debt in total of R 17 000.00. My total monthly instalments are R 3 177.17 a month. I struggle to get thru each month. My plan is to be debt free in December 2011 by paying the R3177.17 till December. What if I get a personal loan or R 17 000.00 to pay the accounts and then I’ ll just have the one instalment of not more than R 1000.00 a month for 36 month and then I’ ll have R 2 117.17 extra a month? Is this a bad option? Or what if I apply for a kredit card with a limit of R 17 000.00 and use this to pay all my accounts and pay R 1000 each month for 17 month? ? ?

Thanks

Amy
Answer 548 views
Expert
Money Expert
Money Expert

01 Jan 0001

Hi Amy
In theory a consolidation loan is ok...but you need to look at the total cost of the loan. R1000 over 36 months is R36000 as compared to your current loadn of R17k. Find out about the interest rate and the total cost.
Whatever you do, dont apply for a credit card to do this - the interest rate is very high.
And most importantly, what is the reason that you are in debt? If you dont address that, you will probably end up in the same place again.
The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical examination, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.