For many South Africans, we need to take out loans quite often in order to survive and live a normal life: the cost of living is astounding and tariff increases are unyielding to the mere budgets of the average consumer. For these reasons, a lot of people have judgments against their names and are currently blacklisted and struggling to get credit in order to make ends meet. This unfortunate turn of events has recently opened an entirely new market of financial services that wasn’t as prominent before. Blacklisted loan agreements are becoming more and more common and there are plenty of new companies offering credit services to those in need.

One such organization is known as Credit Fix. This company has over a decade of industry knowledge and expertise to help you clear your name with the credit bureau. Another company offering loans for blacklisted people is Megaloans, there are too many to name but most of them follow the same basic guide lines: they act as a bridge between getting you out of a tight spot by giving you a temporary short term loan. The borrowed amount is supposed to be used to keep you from falling further behind on payments and allow your life to go on as normal until you can clear your debt.

One of the methods of settling debt that’s quite popular in the States is what is known as ‘pay for delete.’ This is very similar to offering a company a discounted settlement amount and hope that they accept your offer instead of paying off the full amount via a monthly basis – this is usually quite helpful if you can no longer afford the monthly payments and just want to get it sorted out quickly. Some of these companies offer debt consolidation among other credit repair group services in South Africa, which is a fantastic way of taking all your loose ends and tying them together into one monthly payment that you can actually afford. How these agreements work is usually that a legal entity will take on a client’s case and contact all the creditor companies that the client owes money to. An agreement will then be resolved where the debt consolidation company will pay off all of the debt (or consolidate it) in exchange for the client now paying a monthly installment to this new company over a longer period of time but at a more affordable rate.

The advantages of using this kind of method is that you have only one account to worry about with one interest rate and there is a constant paper trail for you to keep up to date with your accounts. There’s much less hassles and it keeps those frustrating legal companies out of your business. From a business entity point of view, the last thing you want to do is to be forced to file for bankruptcy and have your assets liquidated and sold for a fraction of their prices. Consult with bad debt companies about selling or transferring of debt to a factoring client. A lot of companies are willing to buy debt from you and take on the accounts themselves, a good example, in fact, is legal companies that have the industry expertise to use the law in order to get payments from the clients. Big financial firms often don’t have the time or resources to be able to set up these elaborate agreements, so they would rather hire a legal team or simply factor the debt on and cover their losses.

When someone takes out a personal loan, they are liable for repaying every cent and often put down personal assets as collateral should the agreement go bad and the debt be handed over to a legal team. With regards to bonds, it is a much simpler process and doesn’t have such high risk as with regular loans. Because bonds are mostly taken out over a long period of time and by a large financial institution (rather than an individual), there is plenty of collateral in the form of assets and securities. The bonds can easily be bought and sold by investors (much like stocks on a security exchange).

Some things to know about security bonds and the different features on offer are:

Maturity: this is a term given to the duration of the agreement. This period can range from anywhere between 1 year to over thirty) – depending on the duration of the loan, the company can choose to consolidate the debt earlier and pay extra each month. Although, bonds are traded freely on the open market as investments, once the maturity period is met, the full outstanding amount needs to be paid (also known as the par value). Unlike personal loans, bonds’ par values refer to the initial value of the loan taken, and nothing more. It is for this reason that bonds are so popular when it comes to purchasing property. The process for purchasing property will include something like this: the bank will purchase this package from the reserve bank in the form of a bond agreement. Then, in order to profit on this transaction, banks will provide finance to a consumer who will then pay even more than the par value of the bond (with the new interest rate requested by the bank) over a set number of years (which can be lengthened by taking out a second mortgage).

Video information on what exactly a bond is

Banks will then make a substantial profit after the debt is settled between the two providing parties. But, it is not banks alone that can make use of these investments. Any financial institutions can purchase bonds and trade freely if the appropriate requirements and collateral are met. There are many different types of bonds that offer the same kind of procedure with the same principles in mind, however the terms in the contract differ slightly to accommodate for the needs of the lender and the borrower. Some of these different terms include: zero-coupon bonds, bonds that are linked to inflation and also perpetual bonds (which don’t have specific maturity dates). I’d say if you are interested in the purchase or selling of property, the best investment to make would be the purchase and resale of a bond. After the settling of the debt, you have a fixed asset which gains value constantly and can be used to make further investments, yielding very high returns.

There are several different kinds of trailer housing on the market. The main kinds are usually in the form of a trailer. Trailers (also known as campers or caravans) are typically used for holiday purposes and not usually as a permanent home because they are typically quite small in size (although they are known to get quite big). Although they are mostly small, if you are a family of two or three, the space is actually quite adequate and very comfortable. Another kind of pre-built home that you can take on the road with you is a prefab house – these are usually designed with hardwood beams, steel framework and strong bonding agents to make a structure that is solid but also not too heavy. This is the key when it comes to effective modular housing – you need something that is spacious enough to live in and light enough to be pulled by your car without straining the engine or using too much fuel. Mobile park homes have become much more sophisticated and popular in recent years because of technological advancements that make these structures a real treat compared to their predecessors. Some of the main advancements are in the plumbing and bathroom facilities – no longer are they primitive and difficult to use, new innovations make running water and refuse disposal very easy, clean and affordable.

Video on how a mobile home gets transported

Other uses of these kinds of fabricated pre-built houses are:

1. Educational Purposes
2. Laboratories
3. Clinics
4. Site Offices

Let’s have a more in depth look at each of the above mentioned.

Prefab houses are not only for living purposes or for convenience for the family on the open road a lot – but also for educational purposes: a large portion of schools in South Africa use prefab houses as extensions to a school building. It’s a great cost-effective way of providing reliable classrooms if you can’t afford to build on. It doesn’t just stop there though, besides schools there are laboratories, clinics, offices and all kinds of other uses for prefabs. It’s very simple and easy to assemble. One of the more popular companies in the Durban and KZN regions is Parkhome Modular Units. This company provides ground-breaking designs, simplicity and effective housing for any kinds of mobile unit needs as well as rentals and industry advice.

To get financing on mobile homes in South Africa is not a difficult task at all, because the principal amount is a lot less than a full-on fixed house on a property, the loan amount is quite small. Although this is the case, the interest rate is the only part of this transaction that you’ll need to worry about. Trailers and other motor homes incur a higher interest rate than usually mortgage or bond repayments – but if you find the right creditor to make a good deal with, it still works out a lot cheaper than a bond. One of the factors that influences your financing is the insurance on a prefab or motor house – if you are constantly on the road your risk to the creditor increases and therefore the amount will increase. But, if it’s a simple prefab to extend onto your current house, you can strike a very reasonable deal.

Be sure to visit us often for updates and to find out more information about what’s the best move for your housing needs.It could be that your budget doesn’t allow for a house, or that you can’t get financing for a fixed home. Or perhaps you just want to extend another room onto your house for working quarters – the uses are endless, really.

There are even entire organizations that are dedicated to doing just that. For example, there’s a company called ‘Hippo Comparative Services (Pty) Ltd’ (among other similar places) that will go out and do the work for you by getting quotes from various other businesses in the trade and providing you with the best solution to fit your needs. These are known as intermediary companies and they can save you a great deal of hassle because they already know the ins and outs of the industry and how to get the best deals. Once you have located the company that you are happy with, you will need to provide them with your previous insurance policy so that they can cede the liability to themselves, contact the old insurance company and authorize transfer of the coverage plan to that of the new service provider’s.

One of the tricky bits here is the grey area between when the old policy ends and what date the new policy officially starts. This means that there might a vulnerable point when you are legally not under any insurance coverage until the new policy takes effect. All these things can easily be sorted out by phoning or visiting a branch of your new insurance broker. Switching between insurance companies is a very normal procedure and gets handled all the time by the relative companies – there are no penalties for cancelling a policy. You must just make sure that you read the new contract properly and make sure that you can afford it. It could take up 15 working days to receive the new contract, so in the time being, you will be provided with an ID card to verify the validity of your insurance. This document needs to be in your car at all times in case a claim is made (this of course applies to vehicle insurance). What can be insured? Almost anything, really: if you have a valued possession that you know you won’t be able to replace very easily, it would be most sensible to take out a cover plan to cover any losses you may incur if the goods were damaged, stolen or lost due to unforeseen circumstances beyond your control.

The most common types of insurance taken out by majority of clients are:

1. Vehicle insurance
2. Household Insurance
3. Health Insurance
4. Life insurance

Life insurance is a different kind of insurance all together and falls under a slightly different category, namely: Assurance. Assurance basically means that the policy is definitely going to take effect as the loss of one’s life is inevitable. Life cover can be put in place through a company such as Liberty Life, which will provide funeral coverage, burial or cremation, deeds and will administration, transfer of assets to next of kin and payouts to dependents – depending of course on the type of policy you choose to take. This is something very important, as none of us truly know when we are going to pass away, and we’d like to make sure that our dependents are taken care of if tragedy were to strike. We trust you are now well informed of the world of insurance – it’s best to know these things if you want to be clever and make the most of your money.

Accountancy is one of the most vital and important subjects to learn from a financiers point of view as it teaches not only discipline and order, but will help you to be a more organized person and make wiser financial decisions in the long run. This is, of course, what top management of companies thrives on. Chartered accountants are known to be among some of the highest paid employees in the country, pulling in an annual income of over R200,000 and in some cases much, much more. Studies in accountancy will span over many different fields including business management, legal aspects and mathematics – all key skills in the modern day business model.

Planning for your future with the aid of certified financial planning courses will ensure that you are well prepared for anything life has to throw at you – you could be the unfortunate victim of a law suit and need to pay for a good lawyer to represent you, or (as in many cases), you might go through a painful divorce leaving you not only emotionally broken down, but financially ruined as well. All of this heartache and financial burden is avoidable with good planning. Enrolling in one of South Africa’s many universities or colleges is the first step to a brighter future. You could begin with a business finance course and learn the intricate ins and outs of the financial world, learn to play the stock exchange and identify key investments to benefit you personally, or to help your business become a financial heavyweight in your industry.

Business finances will include everything from tax knowledge to accountancy and learning about different management techniques. You will gain vital knowledge and inside information to how and why all the big brands and companies got to where they are today. Skills acquired will also involve taking knowledge provided by industry professionals and applying it to your own business or case studies. Other fields of note to look into would be money literacy training (or financial literacy) – this field of study has everything to do with understanding how a financial system works and getting a firmer grasp on the workings of a national and global economy. The courses on offer will provide training to help you make informed financial decisions and allow you to understand industry terminology that would appear as jargon or over complicated.

All these courses are certified by SAQA (The South African Qualifications Authority) and offered by a number of institutions either as full time or part time courses. One of the leading educational establishments that’s involved with part time courses is UNISA (University of South Africa) – providing educational programs for students of all ages for over two decades and yielding very promising results. South Africa’s educational infrastructure has definitely shown some sort of improvement over the last few years; we can expect great things for younger generations that would like to expand their knowledge, open new doors and make long lasting intelligent and rewarding careers for themselves where they can realize their full potential. It’s never too late to start!

A fixed and adjustable type are available at Wells Fargo home loan rates in South Africa. If you choose the fixed one it will stay the same over the period of the loan as well as your monthly payments. People who opt for this fixed type will have no difficulty in planning their budget or when experiencing rising rates. However, the adjustable type is based on an index and fluctuations taking place over the length of the loan. The adjustable one will initially have a lower interest rate compared to the fixed type. This can change drastically over the length of the loan at times when the economy speeds up and interest begins to rise. Therefor the adjustable type is more risky and you can end up owing more money than you had borrowed although your instalments were made in time. When you are certain which rate you want to choose you can start looking for a home. Now you can reverse the order by consulting a couple of mortgage professionals for advice on your qualifications and get pre-qualified for a loan.

To get pre-approved will be a better option and your approved mortgage will put you in a better negotiating position with the seller who will be satisfied that no financing contingencies will be needed. Should the mortgage rates be favourable at that stage you can act quickly and lock into a preferred rate as soon as you find the property of your choice. To be able to get the best type available at this stage you will have to present a good credit report to the bank before applying for a mortgage. Therefor it is important to check your credit score beforehand. To determine whether you are a good risk and someone who will pay his instalment on time, banks use credit scores. You will be in a good position if you have a record of paying your debts on time, although this can’t be established overnight. With a low credit score the risk is higher that you will miss payments or default completely on the loan. For more information about Wells Fargo home loan rates in South Africa you can visit us again soon for more information.

Watch this video on Old Mutual Retirement plans

They offer a range of plans which we will get into now and when you opt for Old Mutual insurance and life cover you can have peace of mind should anything happen to you. They offer the Pure Life, Life & Disability and Accidental Death & Disability Plans which help you to stay in the market as you go through life’s challenges. They also offer the Premium Holiday and Start Again Benefits which will help you to keep your Life Plans active when you are in a position where you can’t pay your premiums. Another great benefit is a money back guarantee (premium back) as well as a cash back benefit. Firstly you should identify your needs and to help you with this you can use the Features and Benefits comparison table to make the right choice to cover your individual requirements. Secondly you must make a decision on how much you can afford to pay each month. This monthly premium will buy you an amount of benefit, which will be paid out to you or your beneficiaries in the case of death or disability. This can be a great benefit to help you to change your home according to your specific disability or to safeguard the financial future of your loved ones.

For the Pure Life Plan and Life & Disability Plan the highest beneficial amount is R500 000 to cover each life and for the Accidental Death & Disability Plan the benefit amount is R250 000 for each life. The Greenlight Life Insurance will protect your family when you are no longer around. It offers a death benefit which will pay a lump sum to make sure that your debt, estate, dependants, business, duty and other needs will be taken care of if you should die. It also offers an accidental death benefit which also pays a lump sum if you should die in accidental circumstances and no medical testing will be necessary. The final expenses benefits provides cash that will be available to cover final expenses like relatives who have to travel to the funeral, the burial itself as well as clearing all debts for example credit cards. Your partner, biological or legally adopted children and up to four extended family members which includes your parents, can be covered. Furthermore the Care4U benefit is accessible freely to all beneficiaries covered with a Greenlight benefit and covers almost all type of risks. For more information we advise you to contact a financial advisor regarding the Old Mutual insurance and life cover or browse the Internet.

Watch this video on why Capitec Bank is the best option in South Africa

In the ThinkMoney research about Capitec Bank offers good interest rates in May 2009, the net return on accounts was also calculated and this was based on the earned interest minus the bank charges which were paid. The Global One product of this Bank earned their clients a interest income of R252 per annum for the family man group. The next best option the FNB Smart Transmission Account showed a negative cost of R660. For the other group the starter outs an account at this bank would cost R79 per year which is the net cost – interest earned after the deduction of the fees. MTN MobileMoney account was the next best option and would cost R696 per annum. This is 780% higher than Capitec’s! This Bank’s CEO Riaan Stassen stated that it is their vision to use technology in a highly innovative way to keep banking costs low which will put them into a position to offer their clients the best affordable banking.

The above-mentioned research proved that this Bank always is committed to offer the lowest banking fees to their clients as well as the most positive interest rates on a credit balance to offset the costs. Their Global One account actually offers the lowest costs on the daily savings account. This includes: there is no charge for purchases made with a debit card, debit orders and stop orders for a fixed fee of R2.50 each, cash withdrawals done at retailers for R1 per transaction, at the Banks ATM’s it will be a fixed fee of R3.00 per transaction. It is also a great idea to open an account at this bank into which your monthly or weekly salary is being deposited and should you need a loan we advise you to take a look at the great options they offer their clients. There are special benefits if you are one of their existing customers too. For more details about the fact that Capitec Bank offers good interest rates we advise you to do more research online or to visit one of their branches in your vicinity.

It is important to keep in mind that when you want to get a free credit report from Equifax online these type of agencies record all inquiries whenever it should happen that your report is revealed to any other creditor or party. These parties are usually a service provider, lender, insurer or landlord and these inquiries will stay on your report for about two years. All matters of public record which are obtained from government sources like courts of law which include bankruptcies, liens and even child support which is overdue may appear on your report and can stay on your report for 7 years. Your savings or checking accounts, charged-off debts, bankruptcies older than 10 years as well as debts placed for collection older than 7 years, ethnicity, gender, political affiliation, religion, criminal records or medical history does not appear on your report. It is a fact tht your credit score is obtained by the information on your report, but does not form part of your file. You can request this report by visiting their website, phoning them or write them and the details are available online. Any negative information in this report are obtained from others who granted you credit and which is reported to this credit bureau as well as details in your public information or from collection agencies.

Anyone who has an established business relationship with this bureau or who has a permissible purpose according to the Fair Credit Reporting Act may get a copy of your report. This purpose includes: insurance, employment, to consider a loan application or to offer credit as well as collection of debt. The groups, individuals or companies that may have such a purpose include: insurance companies, landlords, potential lenders, employers or potential employers (you must give written consent), companies who with your permission monitor your credit activity, which includes signs of identity theft, local or state child support agencies, collection agencies, institutions considering an application for a government benefit or license as well as others who have a business relationship with the bureau with your written permission to get a copy of your report. Your file can also be given to any third party who pursues you to the requirements of any legal procedure or a court order. When all this information is taken into account you can see how important is to keep track of your credit history. Your credit score is calculated on details contained in your file and is usually established by using the following: amounts owed, your payment history, new credit, length of your credit record as well as type of credit used. However there are different models that can be used to calculate your score all based on the information in your file. Obtaining a free credit report from Equifax online as well as any other details which will affect your file is now readily available via the Internet.

Watch this important video on pension fund advice

If you want to know what actuarial interest is, it is important to also know the rules of your government pension fund and that it is the value of all of a member’s accrued benefits and this can be calculated by using a different formulae. This formulae are available in a booklet provided by the fund. It is important to know that the accumulated value of contributions made by a member self will not be any indication of the real benefits which you will receive. This can only be calculated on the final average salary of the member as well as how long pensionable service the member has. Another important fact to know is that you can’t borrow money from the GEPF, because no provisions were made for loans. If a member was employed by a private company and was a member of a pension fund it is good to know that after he or she has joined the government, their credit can actually be transferred to the GEPF. Tax issues are important too and if you should resign or retire, tax will be payable on your benefits. Gratuity will actually be eligible for tax relief but annuities will be taxed.

You should know that annuity refer to a monthly pension while a gratuity or lump sum is only a once-off payment and you should know that benefits can either take the form of a gratuity or an annuity. You will not be able to put up your pension fund to serve as collateral for a bond because the rules don’t provide collateral. Should you be transferred from one department to another your benefits will be added together and your pensionable service will go on without interruption. You should also know when you will retire and this is something that depends on the conditions of service with your department, but usually the age is 60 but you can retire 5 years earlier which will reduce your benefits. Should you have left the employment of the government and come back afterwards it is good to know that if it is less than 36 months you can buy back your pensionable service by paying in the amount paid out to you plus the interest. We advise you to browse their website where you can get all the information available if you want to learn more about the rules of your government pension fund which can give you great peace of mind.