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Question
Posted by: Joan | 2007/02/22

in debt?

As you all know my man and i are in debt over our heads and he has just started his new job, We came to a decision that we would take out a loan to pay and close all our small accounts then all we have to pay every month is the loan which alot smaller amount than all the small accounts put together that we pay every month. So all we have to pay is our car and the loan, but every one is saying it is the bad idea that it can't work. but if we take out the loan we have a bit extra for groceries and we can save a bit every month. Can i please have your opinions on this.

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Our expert says:
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What I know about financial matters is near dangerous. I hope you have discussed this move with your bank, and that the loan is from a bank and not a loan shark

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 exmanication, 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.

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Our users say:
Posted by: charlie | 2007/02/22

I am sure that the loan N took out with Nedbank was passed over to People's Bank because I got caught like that! Anyway, I decided to close my eyes and pay off the last odd thousand last week. I have closed 2 credit cards and have not touched it again - yes it is difficult but like someone mentioned, if you see a nice dress and you cannot pay cash for it, you don't need it!!! Good luck guys!!

Reply to charlie
Posted by: Blondie.. | 2007/02/22

Who will be responsible to pay off the loan if maybe things go sour between you and your bf..

Just make sure that you are both equally liable, draft a contract if necessary.

Good luck, does not sound like a bad idea, know of a lot of people who have done it.

Reply to Blondie..
Posted by: L | 2007/02/22

There is no way Nedbank can make u pay so much,N. I borrowed R15,000 to pay over 24 months with Nedbank last year. I m paying R809 per month and in total R19,416.

It must have been African Bank, before they amalgamated with Nedbank.

Reply to L
Posted by: N | 2007/02/22

I took the loan with Nedbank its not a loan shark.

Reply to N
Posted by: AL | 2007/02/22

You need to see a professional financial expert at your bank or a bank. Be careful of loan sharks or you will forever be paying back and interest is exhorbitant as one of the previous posters mentioned.

It is not wise to borrow money to pay off debts, rather arrange with your creditors that you will pay them smaller amounts per month and when you are able to, you will increase monthly instalments.

There is a saying never borrow money from peter to pay back paul. You need to budget, if necessary sell some of your assets rather and downsize, if you are living above your means, you need to be realistic and live within your means.

It is not a wise idea to borrow money to pay your debts.

Reply to AL
Posted by: one thing | 2007/02/22

one thing for sure go to a legitimate facility ie a bank and get a loan the person story above of r9000 to pay back r22000 is definately through african bank or a loan shark they give cash so freely because they charge you such alot of interest and i agree with above also fnb the way to go

Reply to one thing
Posted by: Sipho | 2007/02/22

The bset way to consolidate debt is currently through the new FNB BALANCE TRANSFER facility - it works wonders and the interest is capped at nine percent for nine months. I've just cancelled an AFBANK loan and my new repayments are amazingly low...think abt it.

Reply to Sipho
Posted by: N | 2007/02/22

I took out a loan for R9000.00 and paying it back over 2 years. I pay back +/- R1000 back per month and in total I will pay back +/- R22 000.00 I think its 78% intrest is it worth it??? I didnt think when I took the loan and I try to pay more every month at least I will save a bit in the long run. I was stupid but I had no choice it was sort of an emergency. Think carefull before you take out a loan you pay more then double back is it worth it???

Reply to N
Posted by: j | 2007/02/22

yes very good idea - but you have to close ALL of the small accounts or cut up credit cards and truly only have one loan to repay and then your normal living expenses. if you dont do this and you continue to spend on the small accounts then you are heading for huge disaster be disciplined and realise that you can only buy luxuries with cash if you dont have the cash then you cant afford it.

Reply to j
Posted by: RMC | 2007/02/22

It is a VERY good idea if you can get a loan at a smaller interest rate and consolidate it all into one payment. You will juse need to be strong and once you have paid the smaller amounts, cut up those cards. If you see a pretty outfit or something that you cannot afford cash; tell yourself that you have done without it for so many years, you can wait a bit longer. I've been there so I know what it is like.

Reply to RMC
Posted by: G | 2007/02/22

I think it is only a good idea IF you can close all those acounts and not incur any new debt over and above the loan you are thinking of taking out.

I hope it works out well for the 2 of you.

Reply to G

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