Standard Bank reveal drop in profits

Standard Bank Group Ltd. have reported a full-year profit drop of 20 percent due to customers struggling to repay their loans.

In a statement released by the bank, it was reported that net income is down from 13.9 billion rand in the previous financial year to 11.1 billion rand this year.

"As the recession took its toll, demand for credit in both corporate and retail sectors fell," Chief Executive Officer Jacko Maree, said in the statement.

There are some things to keep in mind before plunging into the pool of debt:

• Think about whether you really need what you are wanting to buy: is it really worth taking out a personal loan for electronics or a holiday? Consider your options, you could open a savings account and put the money aside until you've got enough to get what you want, you'll enjoy the reward so much more in the end.
• Can you afford your monthly repayments: if you fall behind on payments, the chances are good that you'll be slapped with penalties and extra interest. Make sure that you can commit to paying your account every month before taking out credit.
• If you're already in trouble, seek advice: it's okay to make mistakes, everybody does. So if you find yourself in debt trouble, talk to an advisor and see how they can help you. It is possible to get your life back on track. 

Always calculate your monthly budget before taking out any sort of credit, whether it is a personal loan, vehicle finance or a credit card. Work the monthly payment into your budget to see whether you can afford it.
 
A good rule to follow is the 30-day rule, if you decide that you really want something and you need to borrow for it, wait 30-days and see if you still feel the same about it when the time has passed. You might have changed your mind and save yourself from a mountain of debt.