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The Latest Debtfree DIGI

Wednesday, March 31, 2010

Cape Town Municipal Rates increase

This week saw the announcement of a municipal rate increase for Cape Town residents. The average increase according to the Municipality should be in the region of 7.7%.This will no doubt affect many who are running on a tight budget.

How will this effect Cape Town consumers budgets?

When doing a budget one can ignore such factors (such as increasing rates or higher food costs) as long as you are sure your salary will increase at a similar or higher rate than such increases in cost of living.

However if your salary is not increasing do remember that such increases will mean less available cash after covering your necessities each month and you may need to begin supplementing your income ..or talking to your employer about a raise.

Thursday, March 25, 2010

Rate Cut

The Repo Rate has been cut by half a base point dropping to 6.5%.

Reserve Bank Governor Gill Marcus surprised many with an announcement of a 0.5% rate cut this week.

While the economy is slowly recovering a recent spike in retrenchments does not bode well for future growth. The rate cut may provide further impetus toward recovery.

Consumers can only be pleased at this recent development that may produce some welcome relief in regard to their debt repayments. The rate cut may result in a difference of up to 1.1% on the rate charged to them by credit providers.

While the minimum required repayment amounts may have changed, for many the wisest course of action could to be to try maintain their present repayment amounts (or even increase them) in an effort to try repay their debt faster over time.

Monday, March 22, 2010

Rate change?

Analysts predict that there will be no rate change announced by Reserve Bank Governor Gill Marcus this week.

A stronger Rand and a slowly recovering economy may actually be factors against any kind of rate change with focus going elsewhere than the "quick fix" of changing the rate.

Many feel that no change will be "good news" and allow the market to slowly continue on its gradual improvement.

Some point to the property market when pointing to the positive change happening in the economy. There has been a positive shift in the average pricing of homes (an increase of Approx 11%) which is good news for those looking to sell. However many potential buyers are still struggling to get finance with more than 50 percent of home loan applications being declined during February despite many banks supposedly "relaxing" their lending criteria.

Sunday, March 14, 2010

PDA problems

When a person goes into the Debt Review process they stop paying their creditors directly themselves and pay one payment of the lump sum toward their debts to a Payment Distribution Agency (PDA). The PDA then split the money between all the creditors according to the plan provided by the debt counsellors.

This process allows for independent 3rd party monitoring of the payments in case disputes arise. These PDA's are monitored by the NCR regularly. At the moment in South Africa there are 6 PDA opperating. They preform a vital link in the debt review process.

However there are sometimes problems that arise as well as no institution is perfect.These problems normally relate to payment times, delayed reporting back to the Debt Counsellor , non distribution of funds, incorrect ref numbers being used or other such issues.

Are you a DC?
Are you having issues with your PDA at present?
Please send us an email and inform us of what is happening.
feel free to mail to:

Thursday, March 11, 2010

FNB Debt Review Dept. moving

FNB Debt review department have moved. This may effect any mail you send (via snail mail). Their new Physical address is now:

First National House

6th Floor

26 Trump Street


Their email addresses and telephone numbers will remain the same for now.