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...
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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...
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...
Loan scams continue
Tebogo writes: I applied for a R200Â 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 R3Â 750...
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...
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...
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...
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...
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...
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...
Previous Articles
Where can I report an illegal garnishee order?
Nkosenhle writes: I took a loan from a credit provider in 2002 and after a few payments I was unable to continue, so the company issued a garnishee order against my salary until the amount was paid off. Despite having settled the amount, after a period of time they...
Should credit cards have a health warning?
In this podcast we search for the truth behind credit cards – are they really a good thing to have in your wallet? We chat to Chris Labuschagne, CEO of FNB credit card and we asked him how many of their customers pay off their cards in full at the end of every month,...
Edgars Club fee under scrutiny
A referral by the NCR may see the removal of the Edgars Club fee. In early November, the National Credit Regulator (NCR) referred Edcon Limited to the National Consumer Tribunal for charging consumers a club fee on credit agreements. This follows the referral of JDG...
The power of paying extra into your mortgage
If you have taken out a mortgage recently you would have noticed on your statement that the interest charged each month is nearly equal to your monthly repayments. In the first few years of your mortgage repayment, interest makes up a very large part of the payment....
Is the credit bubble just changing shape?
While personal loans and credit cards have peaked, payday loans grow by 150% writes Absa Asset Management’s Cornette van Zyl. When recently presenting on the SA Banks, it dawned on me - the industry as a whole, and the consumer in general, came out of our recent...
What your credit report says about you
Make sure you know more about your credit report than your creditors do. Mosala wrote to me when she discovered that she had been ‘blacklisted’. She had lost her job and fallen behind on some payments, and wanted to find out out who had blacklisted her. Salem Dyafta,...
Time to stress test your finances
Many households are already seeing the impact of rising interest rates on their budgets. With interest rates increasing 100 basis points over the last three years, the prime lending interest rate has risen from 8.5% to 9.5% since 2012. To put that into perspective,...
Voluntary withdrawal from debt review
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 person may exit debt...
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 of personal loans...
The dubious world of credit insurance
Chickens are coming home to roost for the credit insurance industry. Last month the National Credit Regulator (NCR) referred the financial services arm of JD Group to the National Consumer Tribunal for the mis-selling of credit life policies, highlighting the type of...