Welcome back to Mother Nature. I have been up and down with work that I am really just getting in my routine hopefully soon. I am always looking forward to learning and interacting with you.

A month ago, I wrote an article on how we must come to term with that we all have debt in one form or another and how we should be more open about it.

Just a few days ago  my bond for the house finally registered and that officially marks my first debt in my working career for the last 4.5 years. I have always tried to buy things cash and second hand if I can but I decided to borrow for my first home. I borrowed N$479 776.11 to be exact. There was a sense of excitement when I saw this because it was finally the debt I have been waiting for close to a year. I will write more about that in the next few articles when I start writing about property investments.

Just two three days later, my bond is already at N$480 078.34  and that when it started hitting home. The compound interest have started accruing already as the bank charge you interest on a daily basis.

The only reason why I am able to see this is because my homeloan accounts shows on my cellphone banking app.  So every time I log in to check how much I have in my bank statement, I am also met with the reality of how much I owe. This may be a sad thing but it serves as my daily remainder as to how much I need to pay in order to avoid the amount from increasing. Whatever I do , I must make sure that with each payment, my loan amount decreases instead of increasing.

To achieve the downward trend, I must pay more than the interest that is accruing/added on a monthly basis so that a portion of the payment that I make goes towards reducing the initial amount I got from the bank. This will mean I must pay over and above the bank is charging me. In addition, the more I can reduce the N$479 776.11, the less interest I will have to pay on a monthly basis as the amount on which the bank is charging me interest is decreasing.

So if you are in debt, the best situation is to actually take stock of how much you owe. Then face it all, no matter how the scary the figure looks. The earlier you can start making a plan, the better you can deal with it. It will not help to bury your head in the sand.

Take charge of your life and make a better choice today.



One thought on “Debt- Sometimes we do not know how much we owe

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