A new non-profit organisation called Foster aims to rattle some cages by providing free debt counselling services to qualifying consumers. Debt counselling can be a lifeline to those who are truly over-indebted and there are many stories (like...
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Options for lockdown debt relief
Credit life payouts and payment holidays are on the cards. But it will only be for those who are directly impacted by the lockdown, and will come with Ts and Cs. While we are expecting more announcements from the banks, they have all indicated that...
Video: How to exit debt review
You can apply for debt review if you are unable to meet your debt commitments. However, in some cases, your finances may improve and you may wish to exit debt review. Whether or not you are able to exit will be determined by where you are in the...
When to consider debt counselling
As salaries struggle to keep up with inflation, and the economy in general continues to deteriorate, many middle- and higher-income earners are now relying more heavily on unsecured loans to maintain their lifestyles. As a result, many more South...
Debt levels rise as salaries fall short of inflation
Higher-income earners are tapping into unsecured loans to maintain their lifestyles as their salaries fail to keep up with inflation. Debt Counselling firm DebtBusters recently released their quarterly debt report for the last quarter of 2019, and...
Video: Debt relief
The National Credit Amendment Act (NCA) was signed into law in 2019. The Act included provisions for debt relief. This is not a way to avoid your debt obligations and you need to understand what it really means. This is a free debt review process...
Financial tools to keep you on track in 2020
Still using Excel or some other rather rudimentary means to keep track of the household budget? Ditch them now! It’s so easy to keep track of your finances and achieve your savings goals with these smartphone apps, websites and online financial...
Using a personal loan to pay off your home
“I have been paying extra into my mortgage each month but it still taking a long time to pay if off”, says Martha, a reader who wonders if it would make sense to rather take out a personal loan over five years and use the money to settle her...
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...
Previous Articles
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 implemented. The banks have...
What the debt relief bill really means
Recently President Ramaphosa signed the National Credit Amendment Act (NCA) into law which included the so-called Debt Relief Bill. This has generated an avalanche of headlines claiming that consumers’ debt is to be expunged. These are dangerous headlines and any...
Video: How much does your debt cost?
Have you ever wondered how much your debt is actually costing you? It is probably a lot more than you realise by the time you have included all the interest and fees payable. If you borrow for less than six months, the microlender can charge up to 5% interest a month,...
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...
Video: Should you use a lump sum to pay off debt?
One of the more frequent questions people ask is whether or not to use a lump sum to pay off debt. For example, you may have R100 000 sitting in a money market account earning 6%, providing an income of R500 per month. At the same time, you have a 48-month loan of...
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...
As cost of living rises, so do informal loans
Annual survey confirms consumer stress but also highlights rise in funeral polices. The recent FinScope SA report, which analyses how consumers are using financial products and services, has revealed a concerning trend around credit extension. It found that the number...
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...
Are we managing our money better?
South African households appear to have a better handle on debt levels, but this could be at the expense of savings, especially for emergencies. Despite headlines about the deteriorating state of consumer finances, the latest Old Mutual Savings and Investment Monitor...
What happens to your joint mortgage when your partner is placed under debt review?
Your joint mortgage may form part of your partner’s debt review without your consent. If you are married in community of property and your spouse is placed under debt review, so will you, because you share a joint estate which includes all debt. However, what about...