In the latest episode of our Money Bootcamp series, we discuss the sensitive topic of debt. While almost all of us need to use credit when it comes to purchasing a home or a car, if it is not managed carefully, it can become a debt trap which...
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How interest on your credit card really works
Interest on your credit card is calculated differently in South Africa from how it works in various other countries. Social media is full of tips on how to maximise the interest-free period on your credit card. The problem is that credit cards in...
Advance payments on car finance explained
Advance payments on car finance can be confusing, as different finance houses may have different ways of treating these advance payments. Any debt that you pay off sooner than required will save you money on interest. However, you need to...
How does the interest-free period on your credit card work?
Most credit card companies try and hook you by saying that they give you 55 days interest free on your purchases. In fact, most credit card holders don’t get any interest-free period on their credit cards. This is because if you don’t pay your card...
Fixed installments ‒ but at what cost?
An offer from your bank of fixed installments on your home loan might seem like great news, but be aware of the costs further down the road. Standard Bank announced that it is providing some breathing space for more than 20 000 home loan clients by...
Would you pay an honouring fee to avoid “embarrassment”?
Could your bank be charging you an “honouring fee” when you go over your credit limit, just to save you embarrassment at the till? Have you ever been in a situation where you are out shopping and happily using your credit card, thinking all is...
What to do if you cannot afford your car payments
As lockdown drags on and job cuts continue, more and more people are facing financial difficulty when it comes to paying off debt. Many people have asked for advice about what they should do if they cannot afford their car payments. The bottom line...
Finding a more equitable credit model
The Save2Buy model is a hybrid between a lay-by and more traditional credit. In a world where credit has become a way of life, is it possible to find a system that allows someone to purchase an item and have use of it whilst paying it off, but...
In search of a low-cost credit card
For the last 14 years I have been the happy owner of a Virgin Money credit card. The card has zero annual fees which made it a perfect credit card to hold for emergencies rather than using for day-to-day spending. In my case I also used it for...
Making the home loan process less painful
Buying a home can be a very emotional experience. You’ve found the home of your dreams and imagined yourself living there, and then you take the financial leap of committing yourself to a home loan and years of repayments. Yet the home loan...
Previous Articles
Listen: Beware the payment-holiday trap
Payment holidays are a lot like real holidays – they end up costing more than you realise. In this podcast, Maya (@mayaonmoney) and Mapalo (@womanandfinance) look at the costs of debt-payment holidays and how to get back on track after taking one.
Video: What is considered a good credit score?
Say you have been working hard at improving your credit score by settling outstanding debts and you are now paid up and you want to buy a house or a car. How long before that reflects on your credit score to the extent that you are now considered a “good risk”? We...
Unpacking interest rates
Last month, the South African Reserve Bank cut rates by 100 basis points and this led to many questions about the mechanism of interest rates. We unpack how interest rates work both for borrowers and savers. What is the difference between the repo rate and the prime...
Video: Should you use your home loan to buy a car?
Home loans are usually the cheapest form of financing and it may seem like common sense to use this lower interest rate to pay for shorter-term debt like car finance. In theory you save money by paying a lower interest rate, however, most people forget that a car is...
Listen: The interest rate cut and your money: 101
As a result of the unexpected 100bps cut in interest rates, we received many questions about interest rates, and the impact the rate cut has on both borrowers and savers. Maya (@mayaonmoney) and Mapalo (@womanandfinance) unpack how interest rates work and do some...
Cashflow relief is better than a term extension on your loan
Taking a payment holiday should only be done if you really have no way to meet your monthly debt payment. It adds to the cost of your loan and can add significantly to the period of your home loan, especially if you recently bought your property. For example, if you...
Credit Life Insurance 101
Credit life insurance is poorly understood in South Africa. This is ironic, because it’s one of the best risk-management tools available to the consumer – especially in challenging economic times. From COVID-19 to junk status, few would argue that 2020 qualifies as...
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 tools: Use your bank’s...
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 mortgage. Her logic is...
Video: Loan scams on the rise
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 using names of...