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.
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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...
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...
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...
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...
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....
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...
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...
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...
Previous Articles
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 loan and is constructed...
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 about balloon payments...
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 credit being...
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.
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...
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....
Beware loan scams
I recently received an unsolicited email from a company called Yes Money Loans. They claimed to be offering loans to blacklisted people at an interest rate of just 3.5% per annum. Considering they were marketing to desperate people who had been “blacklisted” and given...
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...
A car or an apartment?
A 23-year-old wants to do the right thing with her money and not end up a casualty of ‘bad debt’. Nthabiseng has just graduated and started her first job. She still lives at home and is currently using her parents’ car. “I am caught in between buying a comfortable car...