Avoid having a balloon payment at the end of your payment term and try to finance your vehicle over as short a time as possible.

Even though the monthly payment is lower, the interest portion of each payment is more and it just means you pay more interest in the long term.

If you can?t afford the car without a balloon payment, buy a reliable, but cheaper vehicle.

Similarly, if you have to finance a vehicle over a longer term to make the monthly increment affordable for you, it means you probably can?t actually afford it.

Click here to learn how balloon payments work.

The way most people purchase big assets, like a house, is to find the item, put in an offer to purchase and then follow a process by which the bank will check affordability.

A better way to go about this is to check what your real affordability levels are by accurately and honestly assessing your personal financial situation.

Ensure you understand all the costs associated with the purchase of these assets. For example, when purchasing property, how much do you need for a deposit? Will you need to sell one house to buy another? And what about agent commission, transfer costs and conveyance fees? Work all of these into your budget considerations.

If you can?t afford your dream home right now, buy a smaller property, wait a while longer and save up for a bigger deposit. Also, find a mortgage originator who can negotiate with banks.

Need a home you can afford? Click here to search the largest property database in South Africa.