This week was pretty hectic, to say the least with the Reserve Bank sneaking in a,25% interest rate increase whilst inflation is still within the range of 3 to 6%.

The timing was pretty harsh just before Black Friday and then only a few weeks before the festive season.

The average household is using up to 75% of monthly income to service debt. So,25% might not seem a lot but when you add it to the net increase of 1,5% we have experienced since 2014 this leaves us with a 1,75% higher cost of debt. this is applied to your bond, your credit card, your overdraft your car.

Essentially, every R100 000 of debt costs R1 750 more since 2014. An R500 000 bond costs R729 more per month.

There is a silver lining which is starting to peek from the dark cloud. It is found in the recent drop in oil prices at the same time that the Rand has strengthened. This should provide the authorities with ample reason to cut the current petrol prices which have been punishing us. Oil has fallen sharply by 20% to below $60 and the rand dipped below R14 to the $ this week.

We need this trend to hold for a while which will provide some respite and compensation for the interest rate hike.

Some much-needed relief is on the horison just before the end of the year.