There has been an increase in loan scams as people become financially desperate and see a cheap loan as a way out of a financial crisis. My inbox is flooded each day with companies claiming to offer really cheap loans. Many of these emails are...
Increase in unsecured debt is cause for concern
Over 6 million applications for credit were turned down in the second quarter of this year, according to the latest Consumer Credit Market Report. In comparison to the same period last year, the number of new credit transactions and facilities...
When can you exit debt review?
Many consumers commit themselves to debt review only to get cold feet several months later. For some, finding themselves cut off from credit lines is just too stressful, while others find their financial situation may have already improved. A...
Do you know whether you have a personal loan or a credit facility?
Jane contacted us after being caught out by a credit agreement in which she thought she had taken out a personal loan. She discovered later that what she had signed up for was a revolving credit facility, which is very different from a personal...
Debt relief has more questions than answers
There is no question that the debt crisis faced by lower-income households needs to be urgently addressed, however the provisions for debt intervention in the National Credit Amendment Act raise many questions about how and when it will be...
Listen: Credit facility vs personal loan: knowing the difference will save you a fortune
Maya (@mayaonmoney) and Mapalo (@womanandfinance) discuss the dangers of signing up for a credit facility as well as how your partner’s debt can impact your credit score.
The balloon payment shock
One of the more common questions we receive from readers about car finance is regarding a balloon payment. In many cases it seems that consumers eager to buy a car sign on for a financing agreement that they do not fully understand. When we talk...
On-demand credit could morph into lay-by culture
If anyone has made a purchase through online retailer Takealot recently, you would have noticed that you now have an option to finance the purchase through a loan. I don’t need to tell the readers of my website how I feel about this type of instant...
Banks can no longer “set-off” your debt
A bank may no longer unilaterally transfer funds from your bank account to settle your outstanding bank debts. Two years ago, we wrote about how a Standard Bank client had money deducted from his current account to settle his outstanding credit...
Listen: What really affects your credit score: the myths and the facts
Does shopping around for competitive quotes really affect your credit score? Maya (@mayaonmoney) and Mapalo (@womanandfinance) unpack the myths and the facts around what affects your credit score and how you can improve it.
Previous Articles
How to get an ‘excellent’ credit score
When it comes to buying a house or car, a bank would consider both your affordability as well as your credit score. Your affordability will determine how much the bank will lend you, but your credit score determines your interest rate, or whether the bank will even...
Listen: From over-indebted to debt free in six months
Money Makeover winner Samke chats to Maya and Mapalo about her experience of struggling with debt from her first paycheque and how she achieved her goal of being debt free by the age of 27. Ahead of Youth Day, Samke’s story highlights the challenges around the lack of...
How much are you paying for credit life insurance?
If you have any credit facility or a loan, there is a good change you have credit life insurance. This is an insurance which settles the loan should you die or become disabled, and in some cases covers your repayments for a period of time if you are retrenched....
Can your unpaid e-tolls affect your credit record?
The Credit Bureau Association (CBA) recently stated that credit bureaus will not hold information regarding outstanding e-tolls. Legally the bureaus could hold this information as SANRAL qualifies as a ‘prescribed person’ who could submit payment information to the...
When to pay that car deposit
One of the more frequent questions I get asked is whether it makes sense to pay an upfront deposit when buying a car. It seems that dealerships are advising customers not to pay the deposit upfront, but rather to make a lump-sum payment 24 months into the contract as...
Are you in control of your credit profile?
By Mellony Ramalho, African Bank Group Executive The start of a new year is a great time to review your finances and saving habits and to check up on your credit profile. Often it is only when you apply for credit and get turned down that you realise you have a bad...
Can a credit card save you money?
A social media follower recently asked me how he could benefit from using a credit card. The answer is that is depends entirely on your self-discipline. If you are the personality type who may make all sorts of promises to only use it for emergencies, but somehow a...
What the Debt Relief Bill means to consumers
Beware the false hope behind debt relief headlines The National Credit Amendment Bill, which includes details around debt relief, was recently approved by the National Assembly, but it still has a while to go before it becomes law. The so-called “Debt Relief” Bill...
How to protect yourself from loan scams
By Gareth Mountain, Head of Sales at Lending and Innovation Company Olico The current economic situation we’re experiencing in South Africa has created a strong appetite for credit. Often consumers need to borrow money out of desperation just to help them survive. It...
Shopping around for credit insurance
The pricing cap on credit insurance is good news for new loans, but many existing credit customers are still paying over the odds. In August last year, price caps were introduced on how much a credit provider could charge for credit insurance and consumers were also...