A cap placed on how much a lender can charge for credit insurance could result in cheaper loans, but some warn it could also cut credit to higher-risk individuals. Last month the Department of Trade and Industry issued the final credit life...
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Tens of millions owed for reversed debit orders
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...
Why save for a holiday when you can borrow?
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...
Five myths about your credit report
Sharon Coppola, Senior Executive Risk and Compliance at Experian South Africa, unpacks the myths and truths behind credit reports and credit scores. As more South Africans seek ways to manage their personal finances during the current economic...
Should you switch credit cards?
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...
Why your garnishee order is still valid
A landmark ruling by the Constitutional Court on garnishee orders will not be applied retrospectively. Last month, the Constitutional Court issued its ruling relating to emolument attachment orders (known as garnishee orders) in a case that had...
High-income earners feel “stressed” about money
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...
Direct financing for small business
Rainfin CEO Sean Emery frequently holds investor meetings with his family who are all investors in small businesses funded through funding platform RainFin. “My mom is an investor and she always asks me “am I making money” and “am I helping...
How to get a home loan: tips for freelancers and the self-employed
Applying for a home loan is stressful for most people, but this simple financial process can become disproportionately complex for entrepreneurs or freelancers ‒ people who have uncertain or unpredictable income flows. The rigorous affordability...
Understand the fine print
I often receive complaints from people who have signed agreements they haven’t fully understood. Unfortunately there is little recourse for the consumer in such cases. Take time to read the fine print. As consumers we tend to be very emotional...
Previous Articles
Should you close a paid-off home loan?
Morake writes: A friend of mine’s home loan is nearly paid off and she wants to know if she should close the home loan or keep it open. What is the procedure to closing a mortgage? Do you have to pay transfer duties to get the title deed? Maya replies: A mortgage...
What information can banks buy from a credit bureau?
Andy writes: What information are banks able to buy from credit bureaus about my financial history and standing and what do they use it for? Credit bureau TransUnion replies: When someone applies for credit from a lender, such as a bank, the lender will purchase that...
Can a poor credit record affect your chances of getting a job?
Katlego asks: To what extent does your credit record affect your chances of getting a job and can an employer run a credit check? If you have a bad credit record does this affect your prospects and does a good one increase your chances? Maya replies: According to the...
Loan scams continue
Tebogo writes: I applied for a R200 000 loan from a company called Blue Financial Services. They told me the loan was approved and I had to pay a R200 administration fee, which I did. Then they sent me a lawyers letter requiring an amount of R3 750 for cost of...
How to clear your credit record
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...
Why buy a TV when you can rent it?
There is much to be said for renting when it comes to electronics, appliances and even furniture. When I was young, everyone rented a TV, most of them from Teljoy. In those days, TVs were simply unaffordable and credit was not as easily available as it is today. As...
Do you need a credit record to buy a home?
In our article How trying to build a credit record led to a debt-trap, Afika’s decision to take out a credit card to create a credit record ultimately led him into a situation where he had over R70 000 in credit card debt and R3 500 a month was going to pay off his...
How trying to build a credit record led to a debt trap
Don't fall into the trap of taking on unnecessary consumption debt in a misguided attempt to build up your credit record. Far too many 20- and 30-year-olds are struggling to meet monthly debt repayments, impacting their ability to break the dependency cycle and create...
Advice on a consolidation loan
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...
Borrowing could get cheaper, but less available
Late last year the Department of Trade and Industry (DTI) made two announcements that could see the cost of borrowing reduced. The DTI has adjusted the maximum interest rate that will be allowed on loans from May 2016 (see below) and also released draft proposals that...