You can withdraw from debt review if your financial situation has changed significantly or you only have your mortgage left to pay. Earlier this year new guidelines were issued as part of the National Credit Amendment Act (NCAA) around when a...
Alarming increase in ‘payday’ loans
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...
The One Rand Family: lessons from a social experiment
The One Rand Family project followed the experience of a relatively well-off family living on cash only ‒ in fact R1 coins ‒ for a month. If you haven’t followed the trials and tribulations of the One Rand Family aired on e.tv during July, it’s...
Savings: it’s about a change in mindset
Open up your bank statement and calculate how much of your monthly salary goes to repaying debt. Imagine if, apart from your mortgage, you had no debt repayments – think of all that money now available for savings. The reality is that we have...
Time to question that garnishee order
If you have an emolument attachment order (garnishee order), contact the Credit Ombud to find out whether or not it is legal. Recently, a landmark ruling raised questions about the legality of many emolument attachment orders (EAOs), commonly known...
The impact of debt on our retirement
Debt is the main reason people withdraw their retirement benefits when changing jobs, according to key findings of the 2015 Sanlam Benchmark Survey, a comprehensive annual review of South Africa’s retirement industry. After interviewing thousands...
When a car becomes a debt trap
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...
Court mediation available to over-indebted consumers
Consumers in Gauteng and the North West who are not able to pay their debts and who are being taken to court by credit providers can now request the magistrate to refer the matter to court mediation. Magistrates will also encourage parties to go...
What to do when you fall behind on repayments
Lindi wrote to me looking for advice regarding her car repayments. She had fallen behind on her repayments to BMW Finance as her business was in financial difficulty. She wanted to find out if she could hand back the car to the financial...
Pay back that study loan!
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...
Previous Articles
Become your own debt reviewer
By Wikus Olivier, debt expert at DebtSafe Debt is an issue that most South Africans unfortunately find themselves facing for most of their adult lives. Every individual deals with different forms and scales of debt, but for some, their debt spirals out of control....
Why your education is worth paying for
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...
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. Consumers can often feel...
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 Financial Planning Week in...
Feeling the squeeze
I recently undertook an exercise to see how much my monthly bills had gone up over the last few years and was shocked to discover that our household was spending nearly double on groceries than we had four years ago. At first I was in denial – I thought I had simply...
Do you qualify for credit amnesty?
Credit Ombud Manie van Schalkwyk unpacks the credit amnesty, and separates out the myths from the facts. In the lead-up to 1 April, there have been many misconceptions regarding the credit amnesty: exactly who will benefit, what information will be removed and even...
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 live without debt. If...
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 car, and used my...
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 desperation that can...
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 lucrative now that the...