Possible Decrease in prime-lending rates
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 The international financial community is currently experiencing interesting and scary times. The major international banks are under extreme pressure to guarantee investors’ savings. Stock markets are falling at a rate last seen after 9/11. In South Africa, the economy is taking severe strain under prevailing negative economic pressure and the global financial crisis.
The effects on the South African economy of high interest rates and inflation have the potential to lead to a recession as over-burdened consumers refrain from spending at all. There are rumblings about a threat to the value of pension savings, which will be of extreme concern to those who are n the verge of retiring.
With interest rates at a high last seen in the 1990s the majority of the population is feeling the pressure of having very little disposable income. If you are finding that there is far too much month left at the end of your money, and perhaps you are under pressure from people or companies to whom you owe money, then it might be a good idea for you to consider looking into options that will allow you to ease your debt burden. There is some potentially good news, as internationally there is talk of a decrease in prime-lending rates. In fact, some countries have already opted to reduce their interest rates. Australia is leading the way, with a full 1% decrease, effective immediately. The South African Reserve Bank’s Monetary Policy Committee meeting will be held over 2 days on 8 and 9 October, and they might well consider decreasing the prime-lending rate. This will have a positive outcome for consumers who are battling to make ends meet. It might very well be a time to look at consolidating your debt as way of seeing your way clear to a debt-free life, and consequently a life free of financial stress. A debt consolidation loan might be the answer to your financial woes, and is worth a look into. You can apply for either a secured or an unsecured loan that will allow you to bring all of the debts that you have under one ‘umbrella’. The advantages of consolidating your debt are probably best described by Dictionary.com, which gives the description of consolidate as follows: to bring together (separate parts) into a single or unified whole; unite; combine. In other words, you take out a single loan with which you can settle all of your other debts so that you have one repayment amount and only one repayment term. This will allow you to plan and budget more efficiently.
It is however very important to ensure that once you have paid off all of the smaller debts and cut up the credit cards that you do not begin the cycle again. Do not go shopping on those paid-up store cards. Pay cash where you can, or go with out. The consequences of recreating debt might well be your undoing, as you will then have the consolidated debt to repay as well as the debt you have just recreated. |
Debt Blog 