Prime Rate Freeze:

By Staff Writer

Prime Rate Freeze:

"Don't go on a spending spree!" Justmoney.co.za warns

 

Today's prime interest rate freeze is good news for cash-strapped South Africans, but http://www.justmoney.co.za has warned consumers to lock up their wallets and not embark on a spending spree in celebration.

 

Paul Beadle, managing director of http://www.justmoney.co.za, South Africa's online guide to money, says: "The interest rate freeze is good news, but it's just a respite - the economic uncertainty is not over yet. Hard pressed consumers should see the Reserve Bank's decision as second chance for them to get their finances in order, not a sign that things are on the up and they can start spending again.

 

"There has been enormous pressure on Tito Mboweni not to put up interest rates again for fear that it will push even more people over the edge into over-indebtedness and insolvency. But the warning signs still remain, with the banks giving hints that they are suffering a growing number of defaulting loans.

 

"So we really are not out of the woods yet, particularly as house prices are continuing to stall and food and energy costs are still up, despite the oil price fall. Consumers need to focus on getting their finances under control, reducing their spending if possible and staying far away from debt - because the next interest rate decision might not be so positive."

 

www.justmoney.co.za has been created to help South Africans save money by demystifying financial services and helping them to make informed decisions about their money.

 

Completely independent and unbiased, www.justmoney.co.za also 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 Effective financial planning as a single parent

As a single mom or dad, it can be challenging to keep up with the ever-increasing expenses of raising a child. We have a look at the importance of setting up a budget as a single parent.

How your credit score impacts your insurance – and vice versa

Since insurance is paid in advance, it may seem unrelated to your credit score. However, these two are in fact linked to one another. We find out why insurers look at your credit score.

Should you share finances with your cohabiting partner?

When you and your partner decide to move in together, you need to work out whether it would be better to share your finances, or to continue to operate separately.

Deals

Balmoral Staycation Special

Price: R899
When: Until 28 February 2022
Where: Durban

Atlantic Hotel Easter Holiday Special

Price: R2,850
When: 1-30 April 2022
Where: Cape Town

Express Breakfast Special at Piatto

Price: R45
When: Daily
Where: Johannesburg


Latest Guide

Guide to debt rehabilitation solutions