11/06/2024
With the repurchase rate (repo rate) unchanged at the 14-year-high of 8.25%, this means that the prime lending rate in South Africa would remain at 11.75% per annum. This means that for the ordinary consumer the impact on the cost of borrowing:
Loans and Home Loans: Higher interest rates mean that consumers pay more in interest on loans and home loans. This can lead to higher monthly repayments and a greater overall cost for borrowing money, making it more difficult for consumers to afford homes or finance other major purchases such as cars.
Credit Cards: Interest rates on credit cards also rise, increasing the cost of carrying a balance from month to month. This can lead to higher debt levels and make it harder to pay off existing debt.
How to combat this?
Reduce Debt:
Pay Down High-Interest Debt: Prioritize paying off credit cards and loans with the highest interest rates.
Avoid New Debt: Be cautious about taking on new debt unless absolutely necessary.
https://www.iol.co.za/business-report/economy/dont-find-yourself-in-a-debt-spiral-as-interest-rates-remain-high-e250ca49-5597-40c1-8636-a958fc2a3ac5