Guiding consumers since 2009

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 Are you entitled to your spouse’s pension after divorce?

Divorce means more than just parting ways with your partner. It may also involve parting ways with your assets. The Divorce Act states that your retirement fund forms part of your assets. This means that it will be considered when dividing up your assets.

Retrenched – what payments are you entitled to?

In the current struggling economic climate, retrenchments are a regular occurrence and not everyone survives the cut. If you find yourself on the receiving end of retrenchment you may have questions about the payments that are due to you.

Do you want to settle your debt?

You may be considering settling your credit account, whether it’s a credit card or various store accounts, now may be as good a time as any. This especially if you have saved, or you received a tax return or salary bonus. 

Can you afford a personal loan?

Taking out new debt is not always a choice. However, if you’re not pressed by a medical emergency or an unforeseen disaster, it’s worthwhile considering whether you can actually afford it. But what does it mean to “be able to afford a personal loan”? What percentage of your income should you not exceed dedicating to it? 

Deals

Eat for less on Tuesdays at Panarotti’s

Price: R59.99
When: Tuesdays
Where: Nationwide

Get discounts with Clicks ClubCard Seniors Programme

Price: Available on request
When: Daily
Where: Nationwide

Amani Spa Voucher Special

Price: R1000
When: Daily
Where: Cape Town, Jhb, and Port Elizabeth