UNIT TRUSTS VS EXCHANGE TRADED FUNDS

Apologies for being in hiding for so long. I have a number of emails I received whilst I tried to get used to my new work life. I took what feels like a lifetime to adjust. But I must say, I am enjoying the workplace for now. First reader's mail:

Hi I am 34 and recently developed an interest in personal finance. Up till now
I have been living like everyone else with debt, etc. I have started my debt
payoff plan, and is it currently progressing quite nicely. However I have
money my Mom invested for me in Absa Unit trust while I was still at
varsity, about R4 000.00, it has not grown much and I think the Absa fund is
not a very good one. My question to you is should I use the money in the
unit trust to make a huge payment towards credit cart debt, or should I take
that money and invest as a lump sum in Satrix fund. Any advice would be
appreciated. I have been reading a lot of overseas blogs and was pleasantly
  surprised to finally, find a personal finance blog by a South African for
South Africans, keep up the good work:)
Thank you

 Pleasure Anonymous. Congratulations on finally getting your act together. Unit Trusts are usually very expensive, hence your money not growing much. If I were to choose between unit trusts, other bank savings and exchange traded funds (ETF) like SATRIX, I would definitely choose an ETF. If you want to keep your mom's dream of having the R4000 growing you may consider Satrix.

However, a credit card debt is usually very expensive, with even above 20% in interest. Paying your debt makes more sense to me. Its a quicker way to start on a clean slate. I would definitely pay it into my credit card debt. What it means though, is that you wont swipe that credit card at all, until its paid off.

Keep moving. You are definitely on the right track.

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