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4 Jul 2013


Yes, you read right, we got a personal loan for a week or so. I don't ever want to be in a tight corner that we found ourselves in about two weeks ago. We needed money within 24 hours. Our emergency fund is in the 24 hour notice just invest account. We were out of the country and therefore counldnt access the money that belongs to us. What a stressful two days we had.
how we got a personal loan
 We tried to look at our other options. We have an access bond in one of our rental properties. We have used this account before. The Mr calls his bank relationship manager. And banks being banks, they say nope, we cant access our money. Reason being that we need to submit insurance papers, etc. This was never a requirement before. And this property is a sectional title townhouse.

We were stuck in that kind of rut. We couldnt use the money in our emergency fund account and we couldnt use the money in our access bond. As the Mr and bank relationship manager were exchanging calls, the guy mentioned a personal loan. We never think of such expensive solutions, honestly. More than R100k in personal loans is just too scary, but this was our only option. That's how we got a personal loan.

I never knew that one can apply for a personal loan so easily and get approved so quick. In a few hours of faxing the forms we were approved. It this even legal? Reading 13.5% per month in interest nearly gave me a heart attack. Imagine how paying 17%, 21%, etc in credit card debt feels. I would live in eternal guilt and self condemnation. If you have credit card and/or any consumer debt, do yourself and your family a favour by paying them up very fast.

Fast forward to a few days, up to a week later. We then manage to get the funds to pay up the loan. Guess what it did cost us... more than a thousand rands. This is for a few days of us having the R150k in our possession. Remember that I have just above R300,000 in the emergency fund. At 4.65% per month, I get below R1300 per month in interest. That's more like what R150,000 cost me in a week. Banks are not stupid, I want to own one... one can dream right. I guess buying bank stocks counts as part ownership, right?

I don't regret our decision to get a personal loan. How about you? What would you have done?


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