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...
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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...
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...
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...
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...
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...
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...
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...
Previous Articles
Should you just hand back the keys?
You have bought the car of your dreams but within a year or two you realise that the installments, petrol and insurance are all just unaffordable. The car of your dreams is now giving you nightmares – so what can you do about it? One option is simply to return the...
When to pay that car deposit
One of the more frequent questions I get asked is whether it makes sense to pay an upfront deposit when buying a car. It seems that dealerships are advising customers not to pay the deposit upfront, but rather to make a lump-sum payment 24 months into the contract as...
Should you renegotiate your mortgage rate?
Even a 0.25% reduction in your mortgage rate could save you tens of thousands of rands, but how open is your bank to the discussion? Personal finance blogger Steathy Wealth wrote last year about how he managed to save himself R83Â 000 by asking his bank to reduce his...
Are you in control of your credit profile?
By Mellony Ramalho, African Bank Group Executive The start of a new year is a great time to review your finances and saving habits and to check up on your credit profile. Often it is only when you apply for credit and get turned down that you realise you have a bad...
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...
How to protect yourself from loan scams
By Gareth Mountain, Head of Sales at Lending and Innovation Company Olico The current economic situation we’re experiencing in South Africa has created a strong appetite for credit. Often consumers need to borrow money out of desperation just to help them survive. It...
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...
Shopping around for credit insurance
The pricing cap on credit insurance is good news for new loans, but many existing credit customers are still paying over the odds. In August last year, price caps were introduced on how much a credit provider could charge for credit insurance and consumers were also...
What kind of access bond do you have?
Access bonds have different rules so it is important to understand how yours works. Last month Standard Bank customers received notification that they could choose between two different types of access bonds. While this caused some confusion, it highlighted that most...