Companies going bust getting better

By Staff Writer

One of the ways that you can keep track of the economy is the statistics service run by Statistics South Africa. The more real, verifiable, information that you have will allow you to make a better approximation of what will happen next. Anecdotes don't cut it as they may be isolated and spun out of proportion by your perceptual bias. We only tend to see the things we want to see. Statistics help us to make a more accurate assessment. Some of the latest stats show that:

 

  • Liquidations are down 17.5% year on year
  • Insolvencies down 37.1% year on year
  • GDP figures expected to be better

 

We have been in a recession. It may be getting better and we may already be out of the recession. The figures will tell us soon enough, but the figures for liquidations and insolvencies are starting to look better with fewer companies going to the wire. This is great news if you have been worried about your employment however we are not out of a bad economic climate yet. The sun may be peeking out from behind the clouds but there may still be storms on the way.

Many of the companies that were going under were too highly indebted and when the money came due they did not have the cash to pay the people they owed money to. The rate of compulsory liquidations has dropped by 29.2% in the last three months. Like a company you should also plan a budget and deal with your debt before it forces your hand. Get a professional debt management company to help you out and hopefully the New Year will bring back the good times.

Recent Articles

Featured Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Cape Town Fish Market Swartland Special

Price: From R123
When: Until 14 July
Where: Cape Town

Aha Casa do Sol Pay 2 Stay 3 Special

Price: R1,200
When: Until 31 July
Where: Mpumalanga

Open University Free Courses

Price: Free
When: Daily
Where: Online