Tebogo writes: I applied for a R200 000 loan from a company called Blue Financial Services. They told me the loan was approved and I had to pay a R200 administration fee, which I did. Then they sent me a lawyers letter requiring an amount of R3 750...
In our article How trying to build a credit record led to a debt-trap, Afika’s decision to take out a credit card to create a credit record ultimately led him into a situation where he had over R70 000 in credit card debt and R3 500 a month was...
Don't fall into the trap of taking on unnecessary consumption debt in a misguided attempt to build up your credit record. Far too many 20- and 30-year-olds are struggling to meet monthly debt repayments, impacting their ability to break the...
Tstati writes: I am looking for a consolidation loan to consolidate my debt. There are several companies that I came across with this product, but I'm not sure how credible most of them are. Maya replies: Debt consolidation is not necessarily a...
Late last year the Department of Trade and Industry (DTI) made two announcements that could see the cost of borrowing reduced. The DTI has adjusted the maximum interest rate that will be allowed on loans from May 2016 (see below) and also released...
If you have taken out a mortgage recently you would have noticed on your statement that the interest charged each month is nearly equal to your monthly repayments. In the first few years of your mortgage repayment, interest makes up a very large...
While personal loans and credit cards have peaked, payday loans grow by 150% writes Absa Asset Management’s Cornette van Zyl. When recently presenting on the SA Banks, it dawned on me - the industry as a whole, and the consumer in general, came out...
Many households are already seeing the impact of rising interest rates on their budgets. With interest rates increasing 100 basis points over the last three years, the prime lending interest rate has risen from 8.5% to 9.5% since 2012. To put that...
The DTI’s decision to delay the implementation of the NCA Amendments relating to affordability tests has caused a delayed crisis of larger proportions. Many South African consumers have experienced an inexplicable increase in the invasive marketing...
Chickens are coming home to roost for the credit insurance industry. Last month the National Credit Regulator (NCR) referred the financial services arm of JD Group to the National Consumer Tribunal for the mis-selling of credit life policies,...
The dependency cycle is worsening, putting further pressure on those who have an income. I have to confess that the latest results from the Old Mutual Savings and Investment Monitor made for sombre reading. We all know that households are starting to reel from...
It was only when Patricia received a call from Wonga’s head of communications that she realised she had been the unwitting victim of a phising scam that has so far conned over 200 people into parting with their money. Two weeks ago Patricia received an SMS from – what...
If you can no longer afford your car, it's time to take action. Here are your options. Lucky wrote to me to find out whether or not he should sell his BMW for a loss as the cost of the car is having serious consequences on his other financial commitments. Lucky’s...
Why death is killing us financially “Around 85% of people’s debt problems start with a death in the family,” says debt counsellor Deborah Solomon. Despite a relatively high penetration of funeral policies, Solomon says the cost of death in families is plunging many...
Despite an investigation into the rates charged by credit providers for insurance, borrowers are still paying high rates for their credit insurance. If you were stuck for cash and needed to borrow R5 000 which you would pay back over just four months, how much do you...
Credit Ombud Manie van Schalkwyk explains why it's vital that students pay back their study loans. Thousands of students rely on study loans to see them through their years of studying at tertiary institutions. Without these loans, many would not have a chance to...
While borrowing money is generally a bad idea, a student loan is an exception. For individuals who work hard, get their qualifications and manage their loan repayments, a student loan can lead to wealth creation. According to Advtech, within two years of gaining work...
Last week, consumers received good news from the South African Reserve Bank (SARB) that the repo interest rate would be kept at 5.75%, which means that the retail rate at which consumers are offered credit, would stay at 9.25%. Absa provided this useful infographic...
Last month we wrote about the growing global phenomenon of peer-to-peer social lending, which links borrowers and lenders directly, bypassing banks and their fees. RainFin, which was the first peer-to-peer online lending platform in South Africa, announced recently...
The costs of the wedding are just the tip of the money iceberg when it comes to getting married. In the past, according to tradition, a young couple could expect the bride’s parents to pay for their wedding with a contribution by the groom’s family to cover the drinks...