Should you use your home equity to pay off debt with a higher interest rate? [an extract from an Article by: Vernon Pillay – IOL – 1 November 2024]
A number of South Africans have decided to withdraw from their retirement fund in order to settle other, higher-interest debts.
Should you then also use your home loan equity to help pay off large amounts of debt that have a higher interest rate?
The answer to this question is complex, according to Adrian Goslett, the Chief Executive Officer (CEO) of Re/Max Southern Africa.
…Bradd Bendall, National Head of Sales at BetterBond has also provided some tips to help homeowners pay off their bonds much faster.
“Paying more on your monthly bond amount could significantly impact the amount of interest payable over the loan period. Anything extra that is paid into your bond will reduce the balance, and the interest payable over the loan repayment period,” he advised.
The Original Full Article can be Viewed here → Should you use your home equity to pay off debt with a higher interest rate?