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Warning: Don't skip your December home loan payment

Warning: Don't skip your December home loan payment

Author: Pranil Maharaj
Date: 2016-12-02
We find that customers don't intentionally use their bond money, however, early salary payments and overspending quickly puts consumers into a position where they aren't able to meet their debt responsibilities at the end of the month.

In order to help consumers manage their cash flow, the division is running early debit orders, in accordance with the early paydays ofSouth African corporates.

While customers are welcome to contact the bank to request the debit order runs on the usual date, this may put them in a position where they don't have enough money for the debit order to run putting them in a risky position from both a financial and credit perspective.

Customers can call the bank up to four days before their debit order is due and request a change in debit order.

We find that for people who miss one repayment, it takes at least four months to catch up.

One of the ways in which to avoid the dreaded default is to pre-pay into your home loan throughout the year.

This is a far better and effective option than going into arrears - not only will you save on your credit record, but you will also have the advantage of reducing the interest on your capital for the period that you have pre-paid.