Firstly Debt reduction is important and secondly if you're going to leverage debt to build wealth its important to ensure that you only take up efficient loans
Ha!! I wish they teach such in high schools... I'm 32 and your vids have been lighting up my world and changing the way I'm using the little that I have wisely. I wish I had this info in my early 20s but better late than never. Thank you and keep pushing your beautiful work as it changes lives for the better!!!
Thanks for always delivering practical financial content. I just completed this exercise with my home loan and credit card and guess what? Home loan wins, I need to tackle the credit card. Love how transparent you are with your finances...
Hi Miss N. May you please do a video on Wills and Trusts. Which is better: making my bank the executors of my Will/estate or getting these third party companies which will set up a trust and execute my Will?
Hey Nicolette, I love this channel! Which topics bore you at this point? Things that you believe we should move passed in order to move to the next steps. For example I saw the video where you said the rental vs property ownership was a boring a question.
Hey Nicolette. Thanks for the video. Just wanted to know if I'm under debt review and would it be advisable to close some accounts should I have extra income coming in to settle some of my accounts. Will it impact my ability to be able to build my credit score once considering that after I've settle every I was under debt review?
The goal of debt review is to settle your debt. Thats the only way you will be able to get the certificate and have the debt review removed from your profile.
Hi Nicolette, what to do if you have debts that appears on your credit report, but no one has ever made an attempt to collect it? Any way one can have this cleared of your credit record?
What if both were to be above 100?. Say 125 and 115?... My thought is that it'll make more sense putting extra on the home loan to build up some equity,
Depends on your strategy. You then may perhaps move to the snowball method if debt reduction is the objective. But if you are looking to draw from the home loan for another then its best to put it there
Are you living in SA or Zim? here is an article that will help support.easyequities.co.za/support/solutions/articles/13000012730-setting-up-an-account-if-you-re-a-foreign-national
I was born in zim and i stay in zim, i think that is the issue, but thank u so much and i really love watching your videos they inspire me a lot, i just wish one day soon Easy Equities is able to cater for investors from my country and allow them to sign up using their foreign Identity documents
The cashflow index method is not the most efficient way to pay off debt. Tackling the debt with the highest interest rate is more efficient A simple exaggerated example. You have 2 debts Debt A: $12 000, minimum payment per month $1000, interest rate 0% cash flow index 12 Debt B:$12 000, minimum payment $400 per month, interest rate 100% cash flow index 30 The cashflow index method advocates paying debt A first Assume a rich uncle gives you $12 000 If you pay debt A, you are left with $1 400 per month ($400 you were already paying towards debt B and $1 000 you were paying for debt A which you no longer have to pay) and debt B ($12 000) at 100% interest. It will take you 17 months to repay the debt and you will incur about $11 000 of interest If instead you pay off Debt B FIRST, then you are left with still the same $1 400 per month and Debt A $12 000 at 0% It will take you a bit under 9 months to pay off the debt and you will incur $0 interest (thus saving $11 000) The numbers here were both exaggerated and simplified. But the same logic applies whatever the rates and the numbers. Always pay off the debt with the highest interest first
Ha!! I wish they teach such in high schools... I'm 32 and your vids have been lighting up my world and changing the way I'm using the little that I have wisely. I wish I had this info in my early 20s but better late than never. Thank you and keep pushing your beautiful work as it changes lives for the better!!!
Good point
Thank to teach our people, your video are not teaching S.A people but are teach the world.
Well done girl 👧
Thank you so much Hope
Thanks for always delivering practical financial content. I just completed this exercise with my home loan and credit card and guess what? Home loan wins, I need to tackle the credit card.
Love how transparent you are with your finances...
Hi Miss N. May you please do a video on Wills and Trusts. Which is better: making my bank the executors of my Will/estate or getting these third party companies which will set up a trust and execute my Will?
I'm a student and I hope to never owe such large amounts😂
Hhahaha you’ll be surprised
I hope so too for your sake.
Nobu enjoy your student days because when you enter serious adulting,you'll wish to be a teen😥🙆🏾♀️😐!!
LoL I used to hope like you sthandwa sami...but I know you'll do better ♥️
I just bought your book - What's Your Move. I know I am going to gain a lot. Thanks aus Nicollet. God bless you
Hope you enjoy it!
I love your videos. They are very educational. Keep up the good work.
Hey Nicolette, I love this channel!
Which topics bore you at this point? Things that you believe we should move passed in order to move to the next steps. For example I saw the video where you said the rental vs property ownership was a boring a question.
Thanks for the information 🥰😍
Ai mna I love you and your financial education ❤❤
My goodness Nicholette 😘♥️♥️♥️♥️♥️🙏so Amazing you are
Hey Nicolette. Thanks for the video. Just wanted to know if I'm under debt review and would it be advisable to close some accounts should I have extra income coming in to settle some of my accounts. Will it impact my ability to be able to build my credit score once considering that after I've settle every I was under debt review?
The goal of debt review is to settle your debt. Thats the only way you will be able to get the certificate and have the debt review removed from your profile.
@@FinancialBunny thank you
Hi Nicolette, what to do if you have debts that appears on your credit report, but no one has ever made an attempt to collect it? Any way one can have this cleared of your credit record?
Hi Nicole ...how is repo rate and inflation rate affect us day to day ?
How long does it take for me to start building my credit record after debt review?
Hi Nicolette. Does this method work for clothing accounts?
Can you please speak to SABC, and bring back a show called inDebt. You will be a good presenter. 👍
What if both were to be above 100?. Say 125 and 115?... My thought is that it'll make more sense putting extra on the home loan to build up some equity,
Depends on your strategy. You then may perhaps move to the snowball method if debt reduction is the objective. But if you are looking to draw from the home loan for another then its best to put it there
Hey hey financial bunny am from zim I wanna start investing in the south African stock market using easy equities,, can I do that
Are you living in SA or Zim? here is an article that will help
support.easyequities.co.za/support/solutions/articles/13000012730-setting-up-an-account-if-you-re-a-foreign-national
I was born in zim and i stay in zim, i think that is the issue, but thank u so much and i really love watching your videos they inspire me a lot, i just wish one day soon Easy Equities is able to cater for investors from my country and allow them to sign up using their foreign Identity documents
Why you paying so much for a car?
Which degree do you have in finance?
How is that relevant to what she is saying?
The cashflow index method is not the most efficient way to pay off debt. Tackling the debt with the highest interest rate is more efficient
A simple exaggerated example.
You have 2 debts
Debt A: $12 000, minimum payment per month $1000, interest rate 0% cash flow index 12
Debt B:$12 000, minimum payment $400 per month, interest rate 100% cash flow index 30
The cashflow index method advocates paying debt A first
Assume a rich uncle gives you $12 000
If you pay debt A, you are left with $1 400 per month ($400 you were already paying towards debt B and $1 000 you were paying for debt A which you no longer have to pay) and debt B ($12 000) at 100% interest.
It will take you 17 months to repay the debt and you will incur about $11 000 of interest
If instead you pay off Debt B FIRST, then you are left with still the same $1 400 per month and Debt A $12 000 at 0%
It will take you a bit under 9 months to pay off the debt and you will incur $0 interest (thus saving $11 000)
The numbers here were both exaggerated and simplified. But the same logic applies whatever the rates and the numbers. Always pay off the debt with the highest interest first