Debtfree Magazine October 2017

UNSECURED CREDIT
HOW LONG WILL IT TAKE TO REPAY?
YEARS
More credit providers these days are offering consumers larger amounts
of money in loans that can be repaid over very long time periods. For
example, some banks offer up to R250 000 which can be repaid over 60
or even 84 months. That’s either 5 years or even 7 years.
Direct Axis offer loans of up to R150 000 and offer consumers 6 years to
pay the loan back. They say that 24% of their clients use a new big loan
to pay off all their other smaller existing credit so they can end up only
paying Direct Axis each month.
Capitec offer up to R250 000, which can be repaid over up to 7 years. In
total over all that time you will repay around R447 996 if you get a good
interest rate. If you take a smaller loan of R1000 and repay it over 12
months, you will pay around R265 a month (so nearly 3 times the loan
amount in the end).
ABSA offer clients credit from as little as R250 up to R350 000 over up to
7 years. If you borrow R250 and repay it within 31 days you will only pay
R275.
If you borrow R350 000 and repay it over 7 years, your payments over all
those years will add up to R678 718, including interest and fees.