#toptip: Talk to your bank manager The next steps you can take to reduce the interest charged and paid involve your relationship with your bank. There are two conversations that you could have with your bank manager. “The first of these is about reducing your interest rate at some point down the line,” says Geldenhuys. “If you have a good credit history with your bank and are servicing your debt well, they may be willing to reduce the rate that they are charging you. And if the answer is no, find out when you can talk to them in future about a possible reduction.” Another conversation worth having is fixing the interest rate you have with your bank, if analysts predict that the interest rate may increase. “The fixed rate is generally higher than the variable rate, but if an increase is anticipated, this can protect you against the additional costs,” says Geldenhuys. “It is always a gamble, however, because if the rate goes down, you lose the benefit of the decrease as well.”
Posted on: Thu, 31 Oct 2013 07:01:53 +0000
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