There is a misconception that debt intervention proposals currently being considered could mean that some debts are likely to be written off. The high levels of indebtedness in South Africa have led to parliamentary hearings, held by the portfolio...
Last week the Western Cape High Court issued a judgement which set aside certain sections of the National Credit Act which it argued “unreasonably and unfairly discriminates against the section of the population that largely consists of the poorer...
I recently wrote about readers who were complaining about loan shark tactics that got them trapped in a perpetual cycle of debt. Since writing the article, I received several comments from readers who argued that the actions of some micro-lenders...
Once you borrow money from a loan shark, you will be indebted to them for life. City Press has received an increase in the number of readers complaining about loan sharks as illegal moneylenders or mashonisa operate across the country, using...
Four months ago, City Press reader Oscar wrote to us asking for help in finding a debt counsellor as, in his words, he was “broke because of debt.” After doing some research we found RD Debt Counselling and Oscar met with debt counsellor Russell...
Tighter lending criteria as well as consumer awareness is resulting in an improvement in debt levels. The latest figures from the TransUnion SA Consumer Credit Index suggest that South African consumers are starting to wean themselves off credit...
Is financial education more important than free education? According to figures published by the Consumer Credit Panel in the USA, a student who leaves college with a $100 000 student loan is twice as likely to repay that debt than a student who...
US President Donald Trump famously declared himself bankrupt four times – a fact that Hillary Clinton loved to rub his nose in. In South Africa, filing for bankruptcy is possible, but it’s not easy. “If someone files for bankruptcy or...
Disputed debit orders could lead to the collapse of the entire debt counselling industry unless the Department of Trade and Industry takes urgent action. The entire debt counselling industry could collapse, destroying over 5 000 jobs and leaving an...
We’ve lost the plot when it comes to borrowing and saving Recently I had a conversation with a young woman who, along with her husband, is under debt review. She told me that they had just let their lifestyle get ahead of them – they bought a...
The new maximum interest rates do not apply to existing credit cards In May 2016, amendments to the National Credit Act came into effect which set new maximum interest rates which can be charged on a loan based on the repo rate. In many cases this has reduced the...
Debt review is not as simple as handing over your bills to a debt counsellor – you have to keep track of your credit provider statements Three years ago Linda (not her real name) and her husband went under debt review. Like so many young couples, the allure of easy...
As times get tougher, don’t fall into the credit survival trap. The latest figures from the Old Mutual Savings and Investment Monitor show a sharp deterioration in the financial stability of higher-income earners. The survey, which interviews 1 000 metro households...
Budgeting and knowing where your money is going is all well and good, but how do you use this knowledge to reach the goal of being debt free? The whole point of budgeting and money management is to help you get in control of your finances, but it’s usually something...
Ntebo writes: I was unemployed, and then fell behind with my debts. I have found a new job now and intend settling all my debts this year, but I don't know where to start as I am already behind with a lot of my monthly installments. I am not sure if a consolidation...
Tshepo writes: I would to know what the next step is, after you have settled your debts, to improve your credit score – in other words, clear your credit record. Maya replies: According to the office of the Credit Ombud, once the consumer has settled all 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 solution to a debt...
I was recently asked by a young woman if it would make sense for her to cash in her pension, settle her debts and start all over again. It sounds like a good idea: on the one hand you have debt with interest as high as 25% per annum and on the other hand you have an...
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 of our recent...
In this episode of Change in your Pocket, we expose the hidden costs that you incur when taking on debt. https://youtu.be/xo63SxHBCwU – Video supplied by BrightRock Welcome to The Change Exchange, where we are helping you find ways to make the most of out of your...