BRONWYN TANNER – Tuning In: Is it better to invest or pay off the bond?
Community news and events for the mid-South Coast.
The last newspaper of January – the longest month in the year. Hot, hot, hot – we are into summer!
UMPAC is back! The first meeting is at the Italian Club in Umkomaas this Sunday (1st) at 15:00. Join to discuss the June show.
The next Free Market at TC Robertson Nature Reserve is this Sunday (1st), from 10:00 until 14:00. For further information, contact 064 0122044.
The Lions Club is holding a Big Walk for Little Warriors at TC Robertson Nature Reserve on February 14. Show your solidarity in aid of childhood cancer. Free diabetic and blood pressure screening available. For further information, contact 068 2479251.
Nipper season has officially begun. Niplet ages 5-7; Nipper ages 8-14. Learn about the basics of water safety and lifesaving. Join for some fun activities on Scottburgh main beach. For further information, contact Kirsten Cox on 082 8551969.
I met a person who has been able to answer some of my questions. I’m going to share them with readers. His name is Mark.
Question: “I’ve got a bond and a bit of credit card debt, and I try to save something every month. When I have extra money, I never know what to do first. Should I pay extra into my bond, or should I rather be investing?”
I got this simple answer which I am happy with: A useful rule is to get the basics in place first, then focus on the most expensive debt, and only then push harder on investing. First, keep a small emergency buffer, even if it is modest. That stops one surprise expense from pushing you back into debt. Next, if you have credit card debt, that usually deserves attention before investing or paying extra into the bond. Credit card interest is one of the few money problems that gets worse every month if you ignore it. Then, once the high interest debt is under control, putting extra into your bond can be a good move. It reduces the total interest you pay and can shorten your repayment term. If you are still unsure, do this quick test. Imagine your income stopped for one month. Would you cope without using a credit card or overdraft. If the answer is no, build your emergency buffer first. If you would cope, focus on paying off the credit card faster. After that, you can safely put extra money into the bond or investing.
Message me your questions for Mark on 083 7429647.
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