• Proposed Debt Amnesty a Reality?

    10 Apr 2013 | Ralph M Ertner
    Debt Rating

    Almost 90% of all low income earners have an adverse credit record with such “esteemed” credit information bureaus like TPN or ITC. This owed to defaults, mostly on credit cards and shop cards, but prevents them mostly from going on with their lives, to rent a flat, get a job or simply to qualify for average contracts like cell phone or internet.

    The proposal by the Department of Trade and Industry (DTI) and the National Credit Regulator is to remove adverse credit information on debt under R10 000. The DTI stated that the intention of the amnesty is not to encourage consumers to make more debt by simply wiping their credit record, but rather to create a clean slate for consumers to improve access to jobs and housing. Consumers would …

  • Reserve Bank leaves Interest Rate unchanged

    28 Mar 2013 | Ralph M Ertner
    South African Reserve Bank

    SOUTH AFRICA has yet again left its interest rates unchanged. It did not come as a surprise but still prompts our compliments to the continued stance the South African Reserve Bank (SARB) has to take. The inflationary risks are more prominent than ever ogling the ever rising petrol price but also smirking about the slap on ESKOM’s wrists, who now have to raise their money somewhere else but on the back of drained consumers. We wonder, what that will do to the Renewable Energy Procurement Programme (REIPPPP)….?

    Anyway, back to the interest rate, which – as far as the Repo Rate is concerned – remains at 5.0%, translating to 8,5% prime lending rate. (Ever wondered why you pay more than 20% for your credit card? Just count the floors of…