According to a survey recently conducted by Old Mutual, more and more South Africans are trying to keep their head above water during tough economic times by becoming ‘Slashers’ – people with more than one job or steady source of income. In a country with political instability and soaring corruption, low economic growth, a weak currency, tax increases, and credit rating downgrades, South Africans need to look at savvy saving tips, debt consolidation plans and of course increasing their revenue stream to ensure that they weather the current economic crisis.
Mr Price is well-known as one of South Africa’s most affordable clothing and homeware retailers, but recently the company has been in the news as it was taken to the National Consumer Tribunal by the National Credit Regulator (NCR) for breaching the National Credit Act. But has the retailer been guilty of reckless lending and taking advantage of its customers, and what is reckless lending exactly?
A tricky time in any economy, recession is for careful spending and patience in decision making. Impacting everything from petrol to clothing, we feel a knock-on effect when our money loses value. An area hit hard, labour is also hurt by the junk status, increasing costs all round makes it less affordable to hire staff and fulfill full-time contracts.
After a long, trying few months, the ANC policy conference has finally come around. Seeing a shift in power, a struggle to regain hold and tackling the plague of in-fighting, the conference did not resemble its 1990 counterpart – void of the hope that was once such a vibrant part of this movement.
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.
Within the last month, the Department of Trade and Industry made recommendations for amendments to the. The suggested shift, if passed, will allow the minister to implement debt relief measures for certain qualifying creditors and further reducing the weight on over-indebted households over time. A set of changes that will include debt forgiveness to struggling consumers, this is seen as a step towards a consumer friendly credit market, by government. However, the plan is not without its shirt-sighted elements, with little thought seemingly put into the long term impact of the action.
Jacob Zuma is not all too impressed by some of his party’s members, a fact he made very clear as he threatened his detractors within the ANC. With a simple highlighted topic, he made his intentions clear as he warned the NEC not to push him too far. While addressing the party’s national executive committee meeting in Pretoria, after surviving yet another motion for him to step down, Zuma was furious at once again having to defend his leadership – and so close to the end of his lead role in the ANC. After two days of deliberation, the party’s highest decision making body decided against the motion, allowing President Zuma to remain in his capacity as the leader of South Africa. Continue reading
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
When you become a parent, you are more than willing to do whatever it takes to care for your child and give them the best life possible. For many parents, this means risking their own financial security to provide for the future of their kids. But what happens when you grow older and you no longer have a nest egg to fall back on? Chances are that you might risk becoming dependent on your adult children, thus weakening their financial security as well. So, here is the father’s day gift you give yourself: Financial security.
Many types of debt are available to the average consumer, from short and long term to secured and unsecured, all these terms and processes become jumbled after a while. For the average consumer, all this jargon is almost unrecognisable.
As the debt situation in South Africa reaches a dire status, with about 9.85 million South Africans have impaired credit records and the number of individual, impaired accounts being over 20 million. This was revealed in the latest statistics from the National Credit Regulator. With so many in this trap of lending, we decided to shed some light on the typed of debt you can incur in South Africa.