It seems the NCA and the current relatively low interest rates has not improved the consumer debt problem in South Africa.
http://www.businesslive.co.za/southa...owning-in-debt
Shocking!
It seems the NCA and the current relatively low interest rates has not improved the consumer debt problem in South Africa.
http://www.businesslive.co.za/southa...owning-in-debt
Shocking!
Last edited by Dave A; 24-Oct-11 at 01:52 PM.
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The NCA is a farce. It restricts the granting of credit, yet allows you to enter an HP agreement with a repayment period that sometimes exceed the expected lifespan of the product. Repayment terms up to 72 months! It allows for residuals or "balloon payments" which defers up to 30% of the purchase price of a vehicle to the end of the term.
Consumers need to be more educated about buying on credit. There are so many pitfalls and both banks and retailers have so many add ons such as document fees, admin fees, short term insurance, life cover etc. that the uninformed will end up paying much more than double for the item purchased. The problem is that we do not calculate how much we pay, but are only interested in the monthly instalment.
We get regular phone calls from banks (obviously someone from a call centre and not a bank employee per se) offering credit card facilities. When told that I already have a card, one even suggested that I can use it to pay of my existing card!
Excellence is not a skill; its an attitude...
Well it is only half the problem really. The second half is business orientation; how many businesses small to medium had to close down this year alone thanks to BEE provocation/implementation? Now how many job losses can be contributed to this problem alone?
Along with this you have your labour broker hacking away at permanent jobs. Basically they give out payslips and the banks recognise these payslips as income and allow for loans. Now sadly if you do work for a labour broker a person will end up out of work eventually "end of contract and or completion of contract" and then this employee is effectively out of work for a long time. How will this affect the economy?
So basically one recognise these to problems along with heavy fuel costs and tollgate costs that will have an effect on a already over taxed workforce. The system will collapse it cannot do anything else.
peace is a state of mind
Disclaimer: everything written by me can be considered as fictional.
rolling credit cards doesnt help...and these debit assist companies arent making it any better either.
i am yet to hear of anyone actually improving their debit situation by going under debit review...with asistance from these new loan sharks (debit assistantance)
it is like my situation with the utilty...the only reason i can afford to pay back the R10 000 loan i have agreed to with the utility...the fact that the interest rate is only 3 % and i have reduced my bill by more than the 60 % per month.
my concern with these loan sharks which are suppose to assisit you with your outstanding bills...if you couldnt afford the outstanding bills before how do you do it now...with additional fees and admin costs.
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