Rule of 78

Rule of 78

The Rule of 78 is likely to appear in a couple of our posts, so we decided to do a separate post to explain it. There is a little math involved, but it’s very straightforward. The Rule of 78  (also known as the “sum of the digits”) is often used as the the basis for companies to earn interest on loans, calculate interest rebates, or even calculate car insurance refunds. Understanding how it works and

Understanding Hire Purchase – Part 2

Understanding Hire Purchase – Part 2

Hire Purchase (HP) is likely the most common way household items are purchased and financed and is sometimes regarded as an easy way for persons of lesser means to afford certain necessities (or luxuries). But HP transactions are not straightforward. For clarity, we are not suggesting this is a reason to avoid them. On the contrary, our objective is to identify the points you should be aware of, so you have no cause for later

Understanding Hire Purchase – Part 1

Understanding Hire Purchase – Part 1

Hire Purchase (HP) transactions take place everyday for various consumer goods such as furniture, appliances, televisions, and even cars. Several retailers offer these items for sale and tempt you by offering you to “buy on terms”, or put another way, pay for the item with instalments over an agreed period of time (usually up to three years). It sounds pretty straightforward: bring a job letter, payslip, utility bill (or some variation of these requirements); sign

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