Guiding consumers since 2009

Unsecured credit is a sure thing when it comes to demand

By Staff Writer
A recent report by the National Credit Regulator revealed that the value of new credit granted in the fourth quarter of 2009 increased a staggering 18.13% from the third quarter of the year - from R53.58 billion in the third quarter of 2009 to R63.30 billion in the fourth quarter.

More specifically, unsecured credit went up from R8.37 billion in the third quarter to R10.54 billion in the fourth quarter, an increase of 25.83%

The astounding increase in unsecured credit comes as no surprise to Justmoney.co.za's general manager Andy Gilder, whose website deals in sourcing personal finance products for South Africans.

"If one looks at the local Google search data for terms like "personal loan", the last quarter of 2009 will show you a significant increase in volume.

"Searches for terms like "loans" have always been high volume in personal finance, with usually over 250 000 local searches a month, but over the last quarter of last year we saw a significant rise - I can recall struggling to match the increase in demand. Whether this is because of an increase in people on the web or an increase in the demand for credit we can't know for sure, but they are clearly more people looking for loans online than ever before."

More worrying than the credit figures are the debt figures. Of the 18.07 million credit-active South Africans, 10.75 million are in arrears with their debt obligations. Yet again, Gilder is less than surprised.

"There are well over 300 000 local searches a month for debt related terms and this number gets bigger every time we check. We field dozens of questions a day about any manner of debt problems and we've had to team up with local debt expert Debtbusters just to help us field the daily queries."

Gilder notes that the Internet is fast becoming the first port of call for South Africans looking for personal finance products and that the industry is fast becoming highly competitive. Websites like his can expect to cater to more than 40, 000 visitors a month looking for a products ranging from to Investments and medical aid to credit cards.

Recent Articles

Featured Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Check the interest before you take a loan

Justmoney takes a look at what influences the interest rate on a personal loan, the difference between secured and unsecured loans, and its impact on the interest rate.

One retirement, so many funds – pick the right one

Saving for retirement should be one of your priorities. However, it can be confusing to choose between a pension fund, provident fund, preservation fund, or a retirement annuity if you’re not familiar with them.

Which funeral cover lays your worries to rest?

A funeral can be as expensive as R50,000, depending on the type of funeral you want. That is why purchasing funeral cover is important. However, you don’t have to accept every offer that is put on the table. Shopping around can save you a large amount of money.

Deals

Telkom August Big Deal

Price: R249 per month
When: Until 31 August
Where: Nationwide

KFC Streetwise Winter Treat

Price: R99
When: Until 30 August
Where: Online

20% off for Nedbank cardholders at aha hotels

Price: Available on request
When: Daily
Where: Nationwide