It’s that time again when the kids put down their Xbox controllers and pick up their books. Back to school is a time when many parents breathe a sigh of relief as peace is restored to the home again, but debt management cannot be forgotten!
28 November 2012
Smart money management is an important component of developing a sound financial life and future, especially in volatile economic times such as these. Now is a great time to focus on spending smart:
A credit card with a balance of R20,000 with monthly fees of R50 and an interest of 22% (R4,400 per annum) will cost you R5,000 per annum in fees and charges.
If you put the R20,000 into a savings account you will be accruing approximately R1,200 per annum interest.
The smart way to manage your money would be to pay off your credit card first due to the higher interest rate charged, therefore saving you R4,800 per year.