Vine Private Wealth

24/03/2022

Over the coming weeks we will be “Unmasking the Face of Credit” by speaking about the different types of credit facilities available.

Today we will be looking at Bad credit loans (also called subprime loans in other economies)

Points:
• Famously these loans were the catalyst for the 2008 credit crisis, because banks made loans to borrowers with extremely high risk of default.

• The funniest thing about these loans is the NINJA
lending criteria, which stands for:
No
Income
No
Job
Applicant

• Borrowers in this category are a high risk of defaulting. South African lenders are not permitted to offer these types of loans.

22/03/2022

15/03/2022

Why not begin your journey towards financial freedom today!

Contact our team of experts: [email protected]

10/03/2022

Over the coming weeks we will be “Unmasking the Face of Credit” by speaking about the different types of credit facilities available.

Today we will be looking at Debt consolidation.

Points:

• This is a vehicle designed to move all your debt into one place, thus you pay one lender at a revised interest rate for a revised period, as opposed to the multiple lenders you have.

• Be aware of repayment periods, interest rates and your affordability when deciding on whether to consolidate your debt. For instance; a lower interest rate to reduce your short term cash flow burden may be a good thing, but you may need to pay the consolidated debt over a far longer period which could mean you pay more in the end.

Everyone’s circumstances are different, thus it’s important to assess your situation carefully.

03/03/2022

24/02/2022

Over the coming weeks we will be “Unmasking the Face of Credit” by speaking about the different types of credit facilities available.

Today we will be looking at Payday loans.
Points:

• This is a short-term loan designed to be paid back within 28 days – i.e. on or before your next payday.

• Typically Payday lenders charge a fee instead of interest. This is because of the small value and short term of the loan. However, the implication is that you as the borrow could end up having to repay as much as double the amount loaned.

22/02/2022

Over the coming weeks we will be “Unmasking the Face of Credit” by speaking about the different types of credit facilities available.

Today we will be looking at Secured Loans or Bonds.

Points:
-Typically a bond is a secured loan because the house you’re bonding is used as the security to the bank. Sometimes lenders will require further security, like another property you already own or an investment. This means to borrow you must secure the
funds against something that you own.

Debt:Equity ratio is the amount you’re borrowing as a percentage of the value of the property. You’ll often find that to acquire a property a deposit is required. The deposit is usually 10% of the value of the property. What this means is that the amount you borrow as a bond on the property is 90%. Your debt:equity ratio is thus 10:90.

The idea is to increase your equity (ownership) in the property. The quicker you’re able to do this the better for your personal wealth.

17/02/2022

16/02/2022

Over the coming weeks we will be “Unmasking the Face of Credit” by speaking about the different types of credit facilities available.

Today we will be looking at Personal Loans.

Points:
-These are typically unsecured loans because you don’t have to use anything as security to apply for it.

-You can normally borrow between R250 and R350 000 with an unsecured loan like this one.

-You’ll pay an interest rate of somewhere between 3% and 30%, and you’ll have to repay the loan in a period of between one to seven years.

26/01/2022

25/01/2022

Start your finances off right with our various financial services. Over the coming days we will feature each of our offerings.

Vine Private Wealth offers Estate Planning! 🏠

Estate planning is the process of anticipating and arranging, during a person's life, for the management and disposal of that person's estate during the person's life, in the event the person becomes incapacitated and after death.

Get in touch with our team for a free consultation [email protected]