Guiding consumers since 2009

South African's worry about debts and lack of retirement funds

By Staff Writer

A poll carried out by Justmoney.co.za, South Africa's guide to money, found that 28% of people say that ‘Not being able to pay my credit cards or other loans' is their biggest financial worry, whilst 26% cite ‘Not being able to pay my mortgage' as their biggest financial worry - a total of 54% of all respondents to the survey.

However, the single biggest financial worry is actually ‘Not having enough money for my retirement', as voted for by a staggering 38% of people in the Justmoney.co.za poll. By comparison, only 8% of people worry about not having medical aid if they get ill.

With soaring interest rates and a spiralling cost of living, coupled with a huge personal debt mountain, it is not surprising that more than half of all South Africans worry about paying off their debts. But Justmoney.co.za's findings show that a huge number of people are anxious as to how they will survive when they stop working.

Paul Beadle, general manager of Justmoney.co.za, says: "Unfortunately many South African's have fallen into a ‘buy now, pay later' mentality - but the cost of all that spending has caught up with them and now they worry that they cannot meet their debt obligations.

"But what's more, it seems that their thirst for credit - and therefore all the money they need to service those debts - has left them unable to save for their retirement. We are looking at a generation of people who are working simply to pay off their debts, but when they stop working, there will be nothing left in the kitty to support them during their retirement years."

Justmoney.co.za says that enquiries to its personal loans, re-mortgage and debt-consolidation solutions have quadrupled in the last few weeks following speculation about interest rate hikes, with people looking for ways to reduce their debt burden.

Beadle explains: "There are many things that people can do to reduce the amount of money they are shelling out on debt repayments, such as wrapping their debts into their mortgage via debt consolidation. Alternatively, just changing to a cheaper credit card could save them money."

Justmoney.co.za can help people worried about debts by providing guidance on credit cardspersonal loans and debt consolidation.

In addition, Justmoney.co.za says that there is a lot of guidance available for people that have not started planning for their retirement. Beadle continues: "As with any kind of financial issue, whether it is borrowing cash or investing money, people should always seek professional advice when it comes to planning for their retirement.

"It's never too late to start taking action, so all those people that are worried about their retirement plans should look at Justmoney.co.za's retirement section, read the guides, use the calculators and seek advice on boosting their funds immediately."

Justmoney.co.za has been created to help South African's save money by demystifying financial services and helping them to make informed decisions about their money.

Completely independent and unbiased, Justmoney.co.za features a host of comparisons, tools and guides, enabling people to search and apply for new products, all online and completely free of charge.

Recent Articles

Featured Debt counselling – the two sides of the coin

Being overindebted doesn’t just put a strain on your personal finances; it also puts a strain on your state of mind. The best solution is to start the process of debt counselling so that you can escape the debt cycle. But what are the ups and downs of joining this debt relief programme?

Travel ban – how to claim for the loss incurred

As with the recent Covid-19 pandemic, governments sometimes issue travel bans to prevent people from travelling to other countries. This becomes even more complicated if you’ve already planned and paid for your trip. Your flights will be cancelled, and you may lose money from cancelled accommodation arrangements. How do you claim for the financial losses incurred due to a travel ban?

How to finance and insure a second-hand vehicle

Buying a second-hand vehicle may suit your budget better than acquiring a new one. But what impact does an older model have on vehicle finance and car insurance? We reached out to specialists in the field to explain what the financial implications are of pursuing a second-hand vehicle.

Reading your loan agreement: look out for this

Many people don’t read their loan agreements. They just sign on the dotted line without realising that they could be signing their lives away. But it’s important to review your loan agreement before and after taking your loan to avoid future setbacks.

 

Deals

Udemy online course for R180

Price: R180
When: Until 27 March 2020
Where: Online

Educate your kids for free with Skills Share

Price: Free
When: Daily
Where: Online

Take advantage of payment holidays from Standard Bank and Nedbank

Price: Free
When: From 1 April to 30 June 2020
Where: Nationwide