Bank Better, Live Better

work out loan affordability

Affordability is about how much money you have left after all your necessary expenses and financial obligations have been paid, which could be used to repay the loan you apply for.

Article Image

Credit providers use the information on your salary slip and bank statements to see whether you'll be able to repay. Here's how you can work out your own affordability.

  • Take your income after statutory deductions such as UIF, pension and tax
  • Subtract all your necessary expenses such as your bond or rent, transport and food
  • Subtract your other financial obligations such as other debt repayments, insurance and policy payments
  • The amount you have left after all your deductions and necessary expenses is what can be used to the repay the credit you're applying for

 

Was this article helpful?

you may also like...

View All Other Articles View All
travel better with your capitec credit card

travel better with your capitec credit card

Our credit card is your perfect travel partner, locally and abroad. Here are 5 ways it can help you bank better to live better.

Read More
The Credit Boot Camp part 3: Making good credit decisions

The Credit Boot Camp part 3: Making good credit decisions

In this instalment of The Credit Boot Camp, we’re going to talk about managing credit. As with anything in life, good habits are better than bad ones when it comes to debt.

Read More
The Credit Boot Camp part 9: 3 times you could say yes to more debt

The Credit Boot Camp part 9: 3 times you could say yes to more debt

We don’t like talking about our financial responsibilities, especially when it comes to debt. But, what if we told you there are certain instances when you should say yes to more debt? Intrigued? Read on.

Read More
The Credit Boot Camp part 8: How to get the best out of your credit card

The Credit Boot Camp part 8: How to get the best out of your credit card

Credit cards can play an important part in your financial wellness. Here’s how to get the most out of yours.

Read More
View All Other Articles