A while ago while I had a well-paying job I applied for a REVOLVING LOAN with Absa, my limit was R70k. I was paying every month without even noticing how high the interests were. The problem started when I lost my job. I spoke to the bank to reduce my monthly instalment, at first they refused. I had to go to the ombudsman, then they reduced it to R820.00, from R1, 750.00. I was fine with that until I realised every time I pay, my balance was staying almost the same.
After exchanging some emails, I found out that of the R820.00 that I pay, R673.54 is the interest and only R146.46 is the amount my balance is reduced by. I feel like this is bacause for me to finish this loan I will have to pay about R390, 000.00 to the bank. I did not choose to loose my job and I feel these interests are way too high.
So everyone, please be careful when taking this Revolving Credit Loan, you might just have to pay for the rest of your life.
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