PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
hobotain
 
Comments: 18
Article views: 1461
 
 
Latest Badges:


 
View all hobotain's badges.
 

Credit providers not making it easy for our people.

25 March 2014, 10:53

The devastating low levels of inflation, loss of jobs and the low currency rate are just about the few aspects that seem to suggest that our economy is in leaps and bounce. Data seems to suggest that the inflation keeps rising at an indirectly proportional level to the salary increase.  The consequence of this on an individual level is that goods which you buy on a normal basis become more expensive. This is one of the primary reasons why people opt for debt. Debt offers them the convenience to pursue the things they need while maintaining the standard of their lives.

South Africa, the government in particular has gone through various media channels to give cognisance of the dire consequences of debt and also to instil a mentality of saving amongst people of South Africa.  There have been many debates amongst economists as to which alternative between saving and spending is to the affirmative to a well-functioning economy.  John Maynard Keynes believed that if everyone saved money, the demand of goods would drop thus causing the economic growth to stall. While the notion seems appealing, we know though that when the demand falls, prices will fall which will increase the demand. This is the concept of how sales work in many stores. Savings also allows for bank to fund businesses, this can help businesses to be more productive and to hire new employees which is beneficial to the economy.

There is no doubt that savings is important by the deferred utility in the form of future consumptions. Should they not be able to save, short term loans seems to be an attractive option for most as they can be settled within 30 days and do not leave one in quandary.  This form of credit is so popular in the County and if not properly managed can lead many South Africans into a more cohesive state of dependency on credit.  This is a space that needs to be monitored on a regular basis.

Debt Eazy is of the opinion that credit institutions pursue profits at the expense of determining the sounds state of affordability. They also say that most institutions give credit without assessing the bank statements for affordability. They use a payslip as the basis of granting credit. This is a bad practise as a payslip doesn’t show how indebted as person is and how much they may be compromised by the credit you give them. We’ve assessed clients where you find they have four different types of loans from different companies and sometimes they use one debt to pay the other. Debt Eazy says that there needs to be a reinforced ethical framework that is perpetuated throughout the industry to address how companies should approach their business. They also suggest that risk evaluation should be standardized so that there is a uniform approach to risk assessment. Short-term loans are good only when you use them sparingly for a purpose that doesn’t ordinarily happen in your life. Debt Eazy says credit providers need to be prudent in the manner they approach business and not prioritise making profits at the expensive of applying their minds in doing so.

Life is tough as it is in South Africa and it doesn’t have to be made worse by credit providers that are reckless in the manner they give credit.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
18 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Allinone Creation
To be a South African

So The ANC was formed to free the people from slavery, poverty and oppression. Read more...

0 comments 292 views
Submitted by
John Robert Ramsden
Road deaths need attention

I do not understand the logic of Parliament showing such concern for a few lives lost each year in the mines when we lose 18 lives every day of the year on our roads. Read more...

0 comments 89 views
Submitted by
JBee Buthelezi
Tremor in Durban

I also felt the tremor in Durban. Read more...

0 comments 572 views
Submitted by
Graeme Long
The Calamitous World Order and Ho...

I’m a bona fide history nut. Whether it’s a subject, country or person the only sure-fire way to understand it, is to know the history. Read more...

0 comments 1623 views
Submitted by
Cerin Maduray
Saving to Save South Africa's Tre...

At the back end of last year we entered an interest rate hiking period. Mostly notable by the recent 50bps rate increase. Read more...

0 comments 289 views
Submitted by
Nhlane Mohlamonyane
Water in Moutse specifically Ntwa...

We are all more than well aware of the fact that the Country at the moment is experiencing one of the most severe and worst droughts that is has ever had and that the possibility of it breaking soon being hardly unlikely especially so in view of the El Nino effect on our position in South Africa. Read more...

0 comments 93 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2016 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.