Abuse within the credit insurance industry has led to an investigation by National Treasury into the practices of credit providers selling credit life to customers. If you have borrowed money, whether it be through a furniture retailer,...
Peer-to-peer lending
Peer-to-peer lending is a growing global phenomenon which links borrowers and lenders directly, bypassing banks and their fees. It is a similar concept to crowdsourcing except that instead of a business proposal, a borrower lists needs for a...
Five biggest debt mistakes
Wikus Olivier, debt counsellor at DebtSafe, highlights a number of common financial mistakes that individuals often make, resulting in debt. However, these can be mitigated if discipline is practised and changes are made in spending behaviour....
Free financial planning workshops in Cape Town
Financial Planning Week: 25-29 August CERTIFIED FINANCIAL PLANNER® professionals Craig Torr, Paul Rossouw, Ian Beere and Laverne Slater will be giving four free financial planning workshops in Cape Town on 26, 27 and 28 August, as part of...
Do you need to bank with the big four to get a home loan?
As banks become tighter about who they lend to, with preference going to their own client base, could banking with Capitec hurt your home loan application? This was a question posed by Akhona who has banked with Capitec for a long time. “I have...
Can you live debt free?
I was recently interviewed by a magazine who asked if it is possible for a family today to live debt-free. My reply was “absolutely”. I believe that because of the proliferation of credit cards and easy access to credit, we have forgotten how to...
The risk of easy credit
“I've always been a saver and have hated debt with a passion. I applied for a store card to create a good credit rating. It soon became clear that I am not a disciplined spender so I paid off the card and closed the account. This year I bought a...
Budget your way out of debt
Debt counsellors see a surge in applications around February every year as the wheels fall off after the excesses of the festive season and the school fees are due in January. If you’re in debt, you’ll know the feelings of helplessness and...
Debt: the kiss of death
Recently I had two very disturbing conversations about the world of debt. The first was a conversation with someone from the Credit Ombud about how debt administrators and debt collectors farm debtors’ books. Although this practice is less...
How to get out of debt review
If you can prove that you are able to start making regular payments, you can request to end your debt review. When Joseph Masemola's debt began to spin out of control in 2010, he applied for debt review via a debt counsellor. Since then, he has...
Previous Articles
How to reduce your mortgage payments
“I would like to buy an R80 000 house and would like to know what my monthly mortgage payment would be,” writes Wilfred. Maya replies: How much you will need to pay each month to cover your mortgage will depend on your initial deposit and interest rate. By having a...
The real cost of a personal loan
Michael wonders whether it's legal for a bank to charge more than double the amount of his personal loan. “I recently applied for a personal loan of R79 000 to buy a car as I did not qualify for car finance due to a poor credit record. After costs, the total value of...
Customers are flexing their muscles, says Credit Ombudsman
Borrowers are invoking their rights against unscrupulous lenders and debt counsellors. A greater awareness by consumers around their rights when it comes to borrowing money has led to an increase in complaints related to non-bank credit transactions, with the majority...
Moves to address reckless lending
Changes to the National Credit Act are necessary to deal with reckless lending, but proposed amendments may have unintended consequences. The Department of Trade and Industry recently proposed amendments to the National Credit Act to deal with reckless lending. One of...
The cost of Wonga.com’s low-value, one-month loan
I was on my way to present at a conference about the lack of savings culture in South Africa when I first received a press release about Wonga.com. According to their release you could borrow money in six minutes. Six minutes to get a loan! This was great content for...
Borrowing to study
It is that time of year when many students will be selecting their courses for the year. In an ideal world one would have saved enough to pay for one’s studies, but unfortunately this is seldom the case and most students need to consider taking a loan. Borrowing money...
Five tricks to reduce your home loan
Homeowners can reduce the term of their home loan and the total that they pay in with careful budgeting and clever tricks. A house is usually the biggest asset that you will buy in your lifetime, but it's made affordable by the 20-year term of monthly repayments. Most...
Overwhelmed by debt? Call the debt hotline
The National Debt Mediation Association (NDMA) was created as a non-profit centre where consumers can lodge complaints about credit providers as well as issues with the debt counseling process. However, Magauta Mphahlele, CEO of the NDMA, says they were receiving many...
Should I apply for debt consolidation?
“I am really committed to getting out of debt and I have R4000 a month to do so. I currently owe R30 000 on my FNB Credit Card, R25 000 on my ABSA credit card and I have a loan with FNB for R15 000. Should I consider debt consolidation?” asks Nina. Maya replies: You...
When debt consolidation is not the solution
Debt consolidation is often seen as an easy way to get out of debt. Theoretically debt consolidation is a good solution if you are struggling to meet your many repayments. You are able to consolidate all your debts by taking out one single loan and using that loan to...