The good news for consumers with personal loans is that the interest rates on most personal loan agreements are fixed at inception resulting in no impact to the customer irrespective of whether the repo rate is increased, decreased or if it remains unchanged.
Monthly repayments on personal loans won’t be impacted by rate movements, however a hike in rates would impact other debt obligations which inevitably has a knock-on effect on consumers’ overall financial position.
Here are some steps to follow to ensure you meet your existing debt obligations on an ongoing basis:
- Budget and revisit your budget on an ongoing basis (not just annually).
- If you have money to spare, consider paying back more than your monthly repayment to reduce your overall cost of credit.