y;
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Once the banks have reeled you in with the
first loan, they will do everything possible
to keep you in a debt drowning lifestyle.
They have something they called “DIRECT
LOAN TOP UP,” EVERY bank has that.
Every time they realize you are left with a
few months to finish your loan, they offer
you another loan under the pretenses that
they are rewarding you for not defaulting.
You will spend the rest of your life paying
loan after loan and before you know it, you
are 60 years and about to retire and you
have lived a miserable monotonous,
financially stressing life.
The idea is to delay taking a bank loan as
possible, to an extent where you save as
much as possible so that you are in a
position to ask for a loan from the bank
only on a CO-FINANCING prospect, where
you fund the car or house with a portion of
your own money and the bank meeting you
at half. This is quite handy as it reduces
the interest you would have paid had you
borrowed the whole sum from the bank.
Remember, the more you borrow, the
higher the interest rate.
Secondly, it is upon us to try and diversify
dependency on salaries alone. There are far
many prospects available out there than can
improve our financial positions. Classical
accountants will tell you that a car is not an
asset, it continues to drain you financially
every month. Worse still, its value
depreciating. Take a loan to buy something
that will bring in money while you are
paying for the loan. Acquire property
through loans. It’s quite handy as the house
itself will become security or collateral.
Then lease or rent out the house and use the
rental fees to pay back the loan. Your salary
is still untouched; the rentals continue to
pay back the loan and 5 years down the line
you own the house and you have paid
nothing to acquire it.
Your money is your money, you need to
start spending it wisely. Sit down, take a
piece of paper and assess your financial
position. You can have everything you
want in life-a debt free lifestyle,
vacations and houses. Do not become
another statistic of someone who worked
hard all his/her life just so they can die;
miserable, poor and still in debt.
Without a clear cut budget and devoted
personal finance plan, your fate is
sealed. You will never enjoy the fruits
of your labour. Plan it all the way.
Be good, Do good.
“Do not become another
statistic of someone who
worked hard all his/her
life just so they can die;
miserable, poor and still
in debt.”
Maatla Kgasa is novelist,
a screenwriter and an
aspiring entrepreneur.