You can use this calculator to find the monthly payment, effective interest rate, total interest and loan amortization schedule for any fixed interest rate loan. Most of the loan calculators that exist (even the built in functions in Excel) don’t allow for differences in the compounding period and the payment schedule of a loan, while most banks compound on a daily basis, but collect payments on a monthly basis.

I quote a comment left by someone on a News24 article: If you think it is difficult to open a credit card account, try closing one! I have told ABSA & Standard Bank to close my respective cards with them.

I’m sure many South Africans are very happy that the reserve bank cut interest rates earlier this week by a 100 basis points. Sidenote (in case you’re wondering): The repo rate is the rate at which the reserve bank lends money to commercial banks.

We are very likely to see a few interest rate cuts coming our way during 2009 in South Africa. So use your extra cash from interest rate cuts (and any other source for that matter) wisely, pay off your debt and become financially free!

Nate and his family decided a while ago that they were fed up of living with debt. They made a lot of sacrifices, they lowered their living standard, they got by with only one vehicle (they’re a family of 6!!) and Nate even took a second job.

If you are currently stuck with too much debt, I pray that you will look for and find the wisdom and discipline you’ll need to pay off your debt.

These companies are making their money out of people who are struggling to make ends meet, by luring them into making debt they cannot afford, with the aim of trapping them with debt, like a pimp traps the woman who work for him, by supplying them with drugs.

Next time you, or someone you love, is tempted to make debt to buy something as a treat, or a reward, or because you deserve something special, remember that debt comes with cost.

Since interest is just another expense, if your “passive” income is enough to pay the interest on your loans, and all your other expenses, for the rest of your life, then you are still financially free.

Sometimes it may be better for you to not make additional payments towards your loan, but to rather save them up elsewhere (where you do earn interest), and then, once you’ve saved enough money, pay the whole loan off in one go.