When interest rates rise by 0.25%, as they have just have, all outstanding debt repayments increase, from your car, to your house, to credit cards and personal loans.
Don’t Get Caught in the Debt Spiral- Act Now
Rising interest rates, mean that servicing debt will cost you more, so while you may be ‘keeping your head above water’ for the time being, this recent increase could leave you unable to afford your standard of living.
As some of you know, I often stress the importance of consolidating, closing and paying off any debt, and I want you to consider what you can do now to free yourself of costly debt repayments, that are now set to be even higher.
Inflation Will Follow You to the Till
We have all also seen that food inflation is also on the rise. So in addition to Eskom’s electricity increases, and the growing cost of production, we will all soon be paying much more at the till for the same basket of groceries.
Here’s what I suggest to help you get prepared for the incoming increases:
- How you position yourself now will determine your financial stability in the next few years. Make small changes today that will have a big impact tomorrow.
- Open a buffer account – a savings account with 3-4 times your net monthly income. This will give you access to emergency funds when you need them without the added burden of loan repayments.
- Be realistic with yourself about your liabilities and develop an action plan to reduce your debt. Then stick to the plan, pay off your debts and get them out of your life.
I can help you with any or all of the above if you are worried about the impact the rising interest rate is going to have on your outstanding debts.
Get in touch to schedule a free consultation at a time that suits you.