INTEREST RATE CUT

Written by KMSMITH from the blog INTEREST RATE CUT on 12 Sep 2010
Favourite this post

This cut is there to help THE RICH MAN not the average person on the street: Rich man has houses worth millions and outstanding bonds (debt) Rich man drives around in cars worth R500 00 plus (debt) Rich man has 5x diff credit cards (debt) so down come the rates and Mr RICH MAN now goes out and makes more debt, buys bigger car etc etc An average man on the street: Has no bond/some hire houses (no debt) Car is paid off/some no cars (no debt) Has NO CREDIT CARDS – can’t get one, don’t want one (no debt) POOR MAN pays the same as MR RICH MAN for rates & taxes, water, electricity etc, same for BREAD, MILK, MEAT etc etc SO WHO IS THIS INTEREST RATE CUT HELPING ........ONLY THE RICH !!!!! I have spoken to many people re this and they all agree QUESTION?? Do you

4 Comments

carino
13 Sep 2010 08:57

CNAZO A.K.A NAUGHTYGAL
13 Sep 2010 09:22

SO WHO IS THIS INTEREST RATE CUT HELPING ........ONLY THE RICH !!!!!

Segololo
13 Sep 2010 09:23

I am happy. I love Gill Marcus, right now...

the wealthy man will not be happy about the rate cut as their interest on the gizillions they have in the bank will now be less... I don't have R20 in my account and as a poor woman am excited about the rate cut because I will be paying whatever little debt I have off fast since I will keep; paying what I was paying when the interest rate was 11%...

Segololo
13 Sep 2010 09:37

makistozana!!! Gill Marcus cut the interest rate - http://www.businessday.co.za/articles/Content.aspx?id=120667

and the impact on those with debt is a decreased minimum payment on their long-term debt such as homes, cars, credit cards and retail store cards, etc...

I loved this discussion on 702 last week and the brelow sayings is what I took from the finance experts -

a RICH MAN - is one that cannot live within his earnings - e.g. the rich man earns R1000 but his monthly expenses is R3000 because of debt. He is rich because he has a job.

a WEALTHY MAN - is one who lives within his earnings and saves. e.g the wealthy man earns R1000 but his monthly expenses are R600. He saves what he can and so generates more wealth with his savings. He is wealthy because he has a job and generates more money with whatever he gets...

Those that live beyond their earning capabilities are just showing off how much debt they have.

Only TVSA members can reply to this thread. Click here to login or register.