Personal debt is an unfortunate yet often necessary evil. Whether it was a clothing account you needed to open just to qualify for a bond, or a credit card you had to use to pay for that urgent car service; whatever the circumstances, we’ve all experienced the nasty taste of personal debt.
There’s a light at the end of the debt tunnel though. All it takes is paying a little extra every month. I know what you’re thinking. How does paying extra money every month save money? Increasing your monthly instalments may initially feel like taking money out of your pocket but you will save a lot of money on the interest you would have paid.
Here’s an example of how a small extra monthly payment can reduce the amount of money spent paying the interest:
If you owe R20 000 on a credit card and you pay R500 a month, it will take 49 months to pay off and with a 10% interest rate you’ll pay roughly R4 500 in interest. If you pay just R200 extra each month you’ll pay off your debt in 33 months and only pay roughly R2 900 in interest. That’s a saving of R1 600 right there!
Where will you find extra cash to add to your monthly debt payments? It’s simple, get a quote from OUTsurance. Ditching your debt is a possibility with the cash you save from cheaper car insurance with OUTsurance. And if OUTsurance can’t beat what you’re currently paying then ask for your R400 cash and start your journey to debt-free today!