Recession is a hard time in any circumstance, from increased rates to decreased value for money, consumers can feel the pinch out of nowhere. As South Africa enters into a technical recession, the National Credit Regulators have urged consumers to stay away from new or unneeded debts in our worsening economic climate.
In early June, Statistics South Africa announced that the country’s economy moved into a recession after the GDP contracted in two consecutive quarters- showing negative growth in the first quarter of 2017 and GDP contraction of 0.3% in the fourth quarter of 2016. While this is bad for the country overall, those with debt stress will have an even gloomier image in front of them.
Surprisingly enough, the banks don’t want your house, so when it comes to repossession of assets…remember there is always a plan to be made. Usually one of the biggest monthly expenses, also becoming one of the biggest financial headaches for consumers, home loans are a daunting element of life that many face. When you are battling to keep up with bond repayments, remember there is always a helping hand. Whether speaking to the bank, or getting advice from the National Debt Advisors, make sure to manage your debt responsibly. Continue reading
On the 4th of May 2017, parliament offered to assist the National Credit Regulator with the issue of indebtedness, after the regulators informed MPs that consumer debt in South Africa had reached the R1.6tn mark.
While the aftershock of 2016 still rings in the ears of the SA consumer, we look to the year ahead with high hopes and positivity…well we did at least. What seems to be a bumpier ride than the year before, it is time for consumers to buckle their seat belts and hold on tight.
With special warning towards those toying with over indebtedness, 2017 is forecast to be a bumpy ride, creating an atmosphere within which those who struggle with debt have to tighten their wallets and control their spending if they want to make it through the year. With a January petrol hike making basic expenses even higher, coupled with a range of other increases and policy tweaks, the over indebted are soon to be in dire straits.
In light of recent events and the turmoil that was 2016, the future looks uncertain for South Africa. With a rocky road ahead of us, the SA risk factor is one of the worst in the world- we are one of the top 10 risks to the world in 2017 when looking at economic unrest and internal politics.
Standard and Poor’s downgraded South Africa’s local debt by a notch to BBB on last December but kept the country’s sovereign credit rating unchanged by BBB – one level above “junk” status, while saying the economy was still struggling.
While most people associate treasure hunting with pirates, we know better. There is treasure all around us; we just need to know where to look. Continue reading
So you went a little crazy this festive season by overspending on gifts and vacations and now you are not sure how you are going to survive the first month of the year? Continue reading
Recovering from the financial strain of the festive season, you need to take time to organize your money with the goal of avoiding the debt trap. Returning from holiday is always a tough one, coming back to the real world, escaping the fantasy of endless holiday, this is a time that most South Africans don’t look forward to.
It’s time to put a bright red bow on your budget and check your list twice!
We always get annoyed and complain when we see stores deck out their halls with Christmas decorations early in the year and then remove them late January (we know we do). However, we think they might actually be onto something. Continue reading