When the going gets tough

Inflation is down, it is at the lowest it has been for a while and the Reserve Bank target range of 3-6 percent is looking increasingly close. The policy on inflation has been one of targeting interest rates. The Repo rate is 7.5%, this is the rate at which the Reserve Bank lends to the commercial banks at. They then tack on a profit margin and lend to the consumer. This is the Prime rate and it is 11% although this can be negotiated especially with a homeloan. So inflation is looking better but what else can you do to survive the recession?

• Re-negotiate your homeloan rate
• Get a balance transfer credit card
• Find a better value medical aid

When the going gets tough, the tough get going. There are many places where you can save yourself a bit of cash. Your homeloan could be re-negotiated to take advantage of lower interest rates and save you on what you have to pay out every month. A balance transfer credit card enables you to pay off your credit card debt at a lower rate, sometimes saving you up to half of your interest bill on your existing cards. The thing with a balance transfer card though is that all new purchases get charged at the regular higher rate of interest, so you can't spend anything on them. As a vehicle for paying off your credit card debt they are great as long as you can curb the swipe impulse.

Medical aid is seen as a must have purchase and many people spend a significant part of their income on medical aid, but the medical aid market is quite competitive with the medical aid providers constantly looking for new customers. This means that if you compare medical aid schemes you can often find major savings that will help you get going and free your personal finances up. Interest rates may not come down again anytime soon, so do what you can now to shave a few savings from your existing payments. Get a better bond, pay your credit card off cheaper and find a medical aid that gives you the security without the price.