The Reserve Bank's announcement last Thursday, bringing the pre-Christmas rate hike to 14,5 percent, was a key message for those who cannot make ends meet with their monthly budgeting to sharpen the need for considered financial planning, says Liberty Life's Frank Schutte.

The Reserve Bank's announcement last Thursday, bringing the pre-Christmas rate hike to 14,5 percent, was a key message for those who cannot make ends meet with their monthly budgeting to sharpen the need for considered financial planning, says Liberty Life's Frank Schutte.

"Often, the consumer under interest rate pressure faces a debit order debacle as higher interest rates drive up the level of monthly deductions.

"Sometimes, the consumer does nothing, leading to a situation in which insufficient funds are available in the bank account to meet long-term commitments," Schutte said, responding to the announcement by Reserve Bank governor Tito Mboweni last Thursday to raise the repo rate by 0,5 percent to 11 percent. - Isaac Moledi