A LOT of people stay in financial trouble because they do not take their trouble seriously.
Nomsa Motshegare, CEO of the National Credit Regulator, said many in Mzansi find themselves borrowing this year yet again.
“Regardless of the reason for borrowing, before you sign a credit agreement, you need to understand the cost of credit, and the terms and conditions of different credit agreements.”
Credit providers must give potential borrowers a pre-agreement statement and quotation when seeking credit.
These documents outline the terms and conditions of the agreement as well as the cost of credit, interest, service fees, initiation fees, credit insurance – if there is any, required deposit, instalments and the date of the first and last instalments.
According to the National Credit Act, credit providers must conduct an affordability assessment to assess the person’s general understanding and appreciation of the risks and costs of the proposed credit, their rights and obligations under the credit agreement, debt repayment history, and the borrower’s existing financial means, prospects and obligations.
Tshepiso Marope, of MCS Debt Counsellors, offered these tips to help arrange your finances:
- Draw up a budget
- Pay off all your loans before spending on new items
- Spend only on needs instead of unnecessary wants
- Always look for discounts when you want to buy something
If you need help, MCS Debt Counsellors can be contacted on 011 484 0415 or by email or at
[email protected]
