Bikelife finance

[ChrisF]

Sadly most run month to month on,woolwoths,truworths,Edgar's and and and then the credit cards from bank A,B,C and what follows in my opinion is the biggest sharks credit rescue

The debt to income ratio in SA is actually criminal

 

What is the use of living out next months pay now, and loosing some 10% of your potential income on interest before your salary is even paid into your bank account .... I have seen people live like this, where the salary is barely enough to pay all the accounts, and the end of month restaurant goes straight to next months debt.  The pudding hits the fan when this person suddenly needs money to fix the car to get to work ....

 

 

Two worlds appart when somebody can manage their finances and buys an item on debt, without it actually being a big item in their budget.  But when toys are bought on debt, causing the budget to not balance any more ....  Know a guy that went this route and ended up walking to work when he had SMALL unforeseen expenses .....

 

 

some can manage their debt others not .....

 

 

Personally I prefer to buy what I can afford without incurring debt

[Patchelicious]

And there I thought that OPs issues was resolved....

[Thor Buttox]

Sadly most run month to month on,woolwoths,truworths,Edgar's and and and then the credit cards from bank A,B,C and what follows in my opinion is the biggest sharks credit rescue

The debt to income ratio in SA is actually criminal

Truly scarily, the SA D-I rate is really low compared to the US and UK as a whole. Perhaps our skew poverty line means certain percentage of the population has a higher rate but actually it is quite low. I think the lower level of property ownership keeps it that way, but then the lack of an asset makes it worse long term.

 

As someone who spent a few years credit lending and feeling my soul, such as it is, slowly being extracted through my ear-hole, you really have to be a bit of a bastard to lend to people for disposable assets they can't really afford and don't need, at rates that would make your mamma cry, but which were needed to cover the bad debt and other issues. Given that bad debt rate, I am not surprised Bikelife failed on the interest rates supplied here.

[Thor Buttox]

And there I thought that OPs issues was resolved....

You have been particularly grumpy the last few days. Are all your nice socks in the wash??

[Patchelicious]

You have been particularly grumpy the last few days. Are all your nice socks in the wash??

I haven't been on the bike since Sat, Been back in JHB for 3 weeks and my Black Sheep kit hasn't arrived yet. Surely you could empathize with that.

[Thor Buttox]

I haven't been on the bike since Sat, Been back in JHB for 3 weeks and my Black Sheep kit hasn't arrived yet. Surely you could empathize with that.

I missed exercise yesterday for one day and I felt like a truck which ride over itself. So yeah,i totally get it. (And the lack of rest makes the over-training a real possibility, which makes the tiredness even more irritating.)

[Shebeen]

sort of related, but it's an advert. There should be a special place in hell for these people

 

https://www.likemoney.co.za/assupol-funeral-cover-abcta/?ims=FacebookFA4

[Shebeen]

i see directAxis now sponsor the currie cup. Those sharks have been sending me fake cheques with my name on it for a decade now - clearly some chops fell for it!

[ChrisF]

I haven't been on the bike since Sat, Been back in JHB for 3 weeks and my Black Sheep kit hasn't arrived yet. Surely you could empathize with that.

 

Any ONE of those things are enough to drive one to long socks ....

 

Was away on business for a week, earlier this month, WOW ... missed my time on the bike !!

 

 

 

PS - Thursday we will tell him debt is good ... and then it is FRIDAY ....   

[Escapee..]

I haven't been on the bike since Sat, Been back in JHB for 3 weeks and my Black Sheep kit hasn't arrived yet. Surely you could empathize with that.

 

Lets see some pics

 

Following them on Instagram, very cool

[Jakkals.]

I've heard of a guy that sold his vehicle to be able to buy 2 alsi future contracts...luckily it ended well for him.

[Red Robin]

So often I hear "how can companies pay salaries in late (a day or so), because now I have to pay penalties on debit orders that needed to go off but there was no cash in my account" ............

 

My only thought is....did your dad not also teach you to at least have 2 - 3 months salary in your account for those 'what if' times.....

It's unbelievable how people earning relatively high salaries are in that position. I had 2 senior managers who were always first in line to panic when there was a system error and it was ONE day late.

Common theme of living beyond your means regardless of the numerical value of your means.

[LazyTrailRider]

My only thought is....did your dad not also teach you to at least have 2 - 3 months salary in your account for those 'what if' times.....

 

I keep only roughly R1000 in my cheque account at all times (sometimes less), in order to maximise bond interest savings. I'm extremely pedantic with this, to the extent that I'll time transfers between my two bonds, rental income, debit orders etc to the day. Sometimes I get it wrong (it differs every month because I also use one of the bonds as a stash for surplus business cash) and go a few kay into my overdraft for a day or two and pay say R50 in interest. I reckon this is a perfect case study for sensible use of an overdraft facility.

 

Most people don't pay attention to interest differentials, but there are plenty of savings to be had if you're smart about it. For example, I've been continually maxing out the bond on a house that I rent out and ploughing this cash into the bond for our primary residence, because the primary's lending rate is 0.5% higher than the rented one. This maxing out results in an increasing bond payment on the rented house each month, but my rental income is still a fair bit ahead of it, and by maximising the interest I pay on this bond I'm decreasing the taxable portion of the rental income. I'll keep doing this until my bond payment plus rates equals the rental amount.

[GrahamS2]

I keep only roughly R1000 in my cheque account at all times (sometimes less), in order to maximise bond interest savings. I'm extremely pedantic with this, to the extent that I'll time transfers between my two bonds, rental income, debit orders etc to the day. Sometimes I get it wrong (it differs every month because I also use one of the bonds as a stash for surplus business cash) and go a few kay into my overdraft for a day or two and pay say R50 in interest. I reckon this is a perfect case study for sensible use of an overdraft facility.

 

Most people don't pay attention to interest differentials, but there are plenty of savings to be had if you're smart about it. For example, I've been continually maxing out the bond on a house that I rent out and ploughing this cash into the bond for our primary residence, because the primary's lending rate is 0.5% higher than the rented one. This maxing out results in an increasing bond payment on the rented house each month, but my rental income is still a fair bit ahead of it, and by maximising the interest I pay on this bond I'm decreasing the taxable portion of the rental income. I'll keep doing this until my bond payment plus rates equals the rental amount.

You should keep doing this until your primary residence bond is paid off. There's no tax break for interest on the debt on your primary residence, so you really want to keep that bond on your rental property for as long as possible.

[GLuvsMtb]

You should keep doing this until your primary residence bond is paid off. There's no tax break for interest on the debt on your primary residence, so you really want to keep that bond on your rental property for as long as possible.

^^^^

This. The worst thing that can happen is SARS ring-fences your rental losses until your property portfolio becomes profitable.

[nonky]

Truly scarily, the SA D-I rate is really low compared to the US and UK as a whole. Perhaps our skew poverty line means certain percentage of the population has a higher rate but actually it is quite low. I think the lower level of property ownership keeps it that way, but then the lack of an asset makes it worse long term.

 

As someone who spent a few years credit lending and feeling my soul, such as it is, slowly being extracted through my ear-hole, you really have to be a bit of a bastard to lend to people for disposable assets they can't really afford and don't need, at rates that would make your mamma cry, but which were needed to cover the bad debt and other issues. Given that bad debt rate, I am not surprised Bikelife failed on the interest rates supplied here.

 

That (D-I ratio) may be so but 48% of credit active consumers have impaired credit records (3 CONSECUTIVE PAYMENTS MISSED or more).

 

Don't feel bad about lending, access to credit is a fundamental part of any capitalist system.