It is called “financial prison” because even though SA has people with good incomes, who are buying their own homes, they wind up in “financial prison” instead of “financial freedom” – mostly because of what bankers and credit card companies never tell them – and hope you never stop and think about. Just for example, the true interest rate on most home mortgages is about 200% – no, that’s not a misprint; yes 200%, because if you have a 30-year bond, you’ll pay for the home about three times…on a R750,000 bond, you’ll end up paying about R1,800,000 in interest!
That’s why ANYTHING you can do to cut the interest rate and/or pay it off faster MUST be taken advantage of.
Or for example, the kind of credit card debt most people take for granted can eat away your entire financial future like a horrible cancer. If you buy R8,000 worth of furniture with a typical credit card and make the minimum monthly payment, you’ll wind up paying about R40,000 for the furniture, 5 times what it’s worth. Do you think you can get ahead financially paying 5X’s what things are worth?
That’s why ANYTHING you can do to wipe out credit card debt MUST be considered.
If you have credit card debt you are not paying off in full every month, think about this: not only are you paying so much interest, you’re actually paying about five times what you buy is worth.
Imagine: Never shuffling through “the account pile” again, deciding who gets paid today and who doesn’t, not writing out a dozen cheques each month: financial simplification! And imagine having hundreds of free, extra money each month to invest, to get wealthy, so you can stop working if you like, retire early if you like, and maybe start a business. Did you profit from the recent property market boom? Do you have money making you money in mutual funds? Are you investing 15% of your income? If not, why not? — (because you’re spending too much of your income just paying bills!!!) Let’s change this for the better. Now
For more information on debt consolidation, bonds and other related articles go to www.globalproperty.co.za