Guiding consumers since 2009

Companies still going bust

By Staff Writer

Statistics South Africa released the latest data on liquidations and insolvencies for August 2009. The figures show that there has been an increase in liquidations comparing the first eight months of 2008 to the first eight months of 2009 of 29.7% with 2643 entities being liquidated. However August 2009 compared to August 2008 showed a drop of 7.4% in liquidations with 264 entities going bust. So what does this mean?

 

  • Economy still in doldrums
  • Pressure may be easing
  • Insolvencies easing

 

Insolvency data contained in the report is to July 2009 and shows a decrease in the number of recorded insolvencies. Comparing July 2008 to July 2009 showed a decrease of 51.8%, and comparing the first seven months of 2008 to the same period in 2009 showed a decrease in insolvencies of 17.2%. This shows that the cash and credit crisis may be easing up somewhat. The economy is still technically in a recession but there seems to be a little bit less pressure now.

These data give an indication of how hard real companies are finding it out there in the economy at large. Everyone has anecdotal evidence of the recession but these figures show it may not be as bad as it could be. However there are still problems and more companies are being liquidated. If companies are finding it hard to stay afloat you can at least make sure that your personal finances also keep their head above water. Plan a budget and stick to it, cut back your expenditure and put more into savings.

Recent Articles

Featured 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.

 

Part 1: The difference between good and bad debt

In the first part of our Debt-ucate series we explore the difference between good and bad debt and why debt is, in fact, necessary.

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