19/10/2022
1. For those with USD Mortgages, please declare a force maejure now. Don’t wait until your repayment exceeds your income level.
Ask your bank to suspend the loan repayment and put up the house for sale so you can get your equity. Your home have appreciated in value, but if you don’t put it up for sale, you won’t benefit. If you default, the bank will take possession and give you nothing.
We are not in normal predictable times. It’s not your fault. You need to cut your losses and get a breathing space.
Note: Your bank doesn’t love you this much to advise you this way.
2. Those with GHS denominated loans with fixed rates, you can go to sleep 😴. Depreciation is paying your loans off for you. Don’t pay off your loans. It will get smaller in value with time.
3. Those with variable GHS denominated loans, apply point 1.
Extended tenor of loans only means more profit for the bank that a relief for the borrower because of the amortization formula of which bigger portions of your repayment will be used to pay for interest while the principal will remain virtually intact. Don’t rush to agree to extended tenors, do the math.
4. If you have any savings in GHS, please convert it into some non perishable goods. Like building materials, buying of a house property or land, brand new motorbikes for keeps until everything stabilizes.
5. If you need liquidity with your savings, then exchange to another currency. (Note: this impacts all of us negatively but if you want to save yourself ☹️, this is the unfortunate route)
6. If you have savings in cash instruments such as T bills, Bonds, Fixed Deposit, Mutual Funds etc, make sure the firms are matching inflation numbers of 32% plus.
If you are getting anything less, please liquidate and pay the penalties on those investments. It’s not worth it taking anything less.
7. It will be advisable to stock food stuffs beyond 1-3months at home. Food prices are going to sky rock without notice.
8. Also you will need to hold some cash at home too and not put all in banks. Withdrawal of these funds will become difficult if the trend continues this way. A withdrawal quota system may be introduced.
9. Time to pay some rent advance if you have excess funds just to make sure you have shelter security.
10. Don’t just be a consumer, you will also need to sell a real product or service where people will have need to pay you. Butter trade is on the horizon. Cash may not be valued that much.
My advise to Authorities;
1. Help slow the economy down. Reduce imports of all nonessential goods.
2. Increasing of BOG policy rates is only hurting businesses.
3. Government must speak the truth and react in the right way to calm the markets especially the forex.
4. Fix the rates at the ports. Duties for essential goods must be reduced.
5. We need your quick help before it turns to the fittest will survive.
Above all, trust in the lord with all your heart and lean not on your own understanding… in all your ways acknowledge him and he will bring it to pass….
(c) Bizkit
