access living with standard bank

[murdock]

i got a letter from standard bank offering me an access living card...which works like this...

like an access bond...you can have an access card which allows you to...for example like i want to do is repaint my entire house...and we all know how expensive that is now days...you need an access bond to pay for it...anyway back to the point...i call them to get more details...

first i am told the call is being recorded...no problem with that...

then i am told they need to do a credit check...no problem with that but cant understand why...considering i am only borrowing money i have already paid off on my bond...i am not requesting a higher bond.

then i am told i have to supply bank accounts and payslips etc....so now i start getting wary so i enquire why all the details...

now heres the small print...your bond will be recalculated...interest charged and additionla fees etc etc etc...the bottom line i will being paying a lot more for the additional amount than present bond...i instructed the consultant to leave everything as it is and not to the change anything...thanked him and put down the phone...eeeeish i should have known better...standard bank never offers anything unless there is money to be made by them.

need to work a little harder to pay for the paint then roll up my sleeves and learn to paint...lots and lots of plastic to cover everything...in fact the way i paint it might pay me to move out for a couple of months

[BusFact]

...eeeeish i should have known better...standard bank never offers anything unless there is money to be made by them.

Exactly. They are there to make money. The sooner we realise that and stop falling for their very well marketed, charitable image, the less frustrated we'll be with our interactions with the banks.

[daveob]

if you can't beat them, join them. become a share holder.

[murdock]

the problem as explained to me is i wont feel it now...only in 50 years time when i am still paying my bond...and wonder why...considering the bond period when i started was only 15 years.

just like the debit councillors...immmediate relief but boy are you gona pay in the long run...interest and fees.

we only notice the short money out your pocket paying for things...

much like a residual on your car...sounds great but if you cant afford it now how you gona afford the 50 % upfront at the end...chances are you cant and will take another 5 year hp...and boy when you add up what you end up paying for the vehicle...you probably could have settled your bond...think about it next time before you sign that piece of paper.

i am feeling it now...all my vehicles where paid for in cash until 2 years ago then i took out hp for tax reasons...i should have rather paid the tax i would still be smiling to the bank instead...i am still paying off the interest...and have another 3 years still to pay off...what a waste of money.

talking to mate the other day about his solution to his finances...which is the best advice i heard since i started my bussiness....take all your vat every month and deposit into a saving account...when its time to pay sars...take out what is owng to sars and pay them...the balance left in the account just leave it there until after a period of time...which is not important ...you will get to point where you have a R100 000 in the account...then trasfer that into a money market account and dont touch it...and start all over again...eventually you will have enough money to buy vehicle...etc for cash and save even more money...and you will have capital to keep your bussiness afloat during the hard times...he never buys anything on hp...only if and when he can afford to pay cash for the item.

[Dave A]

Banks certainly seem to be pushing out the credit again by the looks of things. I reckon I'm turning down an offer or an upsell a week at the moment - which is quite a bit more activity than it has been for a while.

[murdock]

they must be gearing up to increase the interest rate...which will cripple most...even those who are just getting by...much like the petrol price...you always know when we a re in for a hefty increase...when they drop it slightly...

after putting some thought into the access living idea...it is absolutely ridiculous....paying off a loan to repaint my house for 20 years just doesnt sound like a good idea...imagine what the total repayment ends up at...and just imagine when the interest rates climbs again

considering the period i have had my vehicle and what i still owe...eeeish i will pass thanks...the bank can keep thier access living...the only access i want is to real hard earned cash.

[Dave A]

they must be gearing up to increase the interest rate...

Not so sure about that - my read on fundamentals at the mo' is that if anything, pressure on interest rates is still downward. And my account manager reckons interest rates should be stable or down slightly over the next couple of years still.

I reckon banks are chasing business because credit worthy people are still gun credit shy at the moment (which is probably a good thing too).

Of course this strike business might throw a new curve...

[tec0]

Well ABSA with it systems is currently driving me bonkers. First of it is not worth investing at ABSA simply because of the commission charges. Basically if you invest your money at them then you pay for your own interest for that year “depending on the amount” and only see profit after 2 years. So if you planned to invest for 5 years you better make it 7 years. Not to mention they charge a fee on every amount that goes into the investment so you basically end up with a permanent loss.

[murdock]

Well ABSA with it systems is currently driving me bonkers. First of it is not worth investing at ABSA simply because of the commission charges. Basically if you invest your money at them then you pay for your own interest for that year “depending on the amount” and only see profit after 2 years. So if you planned to invest for 5 years you better make it 7 years. Not to mention they charge a fee on every amount that goes into the investment so you basically end up with a permanent loss.

that sounds like a typical bank.