As we have no control over interest rates, it’s a good idea to plan ahead for when they increase – which they always will. There are many ways to plan ahead, such as saving enough money for when it happens. But there are also times when we are unable to plan ahead in the way we’d like, and just do not have the cash on hand to deal with interest rate hikes. Here are some effective ways to manage your finances when rates increase:
1. Consolidate your accounts:
If you find yourself with less money than you’d like at the end of every month, it could be a good idea to take a loan and consolidate all your accounts into one, more manageable monthly payment. For example, if you’re paying off credit cards and retail accounts to the amount of around R2 000 per month (and that keeps going up as interest rates do) you could apply for a DirectAxis Personal Loan, and use it to settle all those accounts. Generally most credit cards and retail accounts are paid over 6, 12 or at the most 24 months. Take your loan over a longer period, and you could find yourself with just one, more manageable payment every month.
2. Only speak to people you can trust about credit.
If you do choose to take a loan, or apply for additional credit, make sure that you choose a reputable Financial Services Provider.
3. Look for fixed interest rates.
A DirectAxis Personal Loan offers you a fixed rate – which means you’re not subject to any fluctuations.
4. Choose the ‘no interest’ option when it’s available.
Some retailers offer a ‘low interest’ option over a longer period or a ‘no interest’ option over a relatively shorter period – choose wisely.
To apply for a Personal Loan from DirectAxis that offers YOU the benefit of fixed interest rates, click here to apply or call us on 0861 135 135. Alternatively, click here and we’ll call you back.
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