What is reckless lending & have you been a victim?

Do you get nervous when you hear the terms 'credit score check', 'credit bureau clearance', or 'blacklisted'? Does your debt seem like an insurmountable hurdle that keeps you from reaching your potential in life? If so, you may have been the victim of reckless lending. Today we take a look at this unscrupulous business practice and what it means for the South African consumer.

What does ‘reckless lending’ mean in the South African context?

The National Credit Act safeguards the rights of consumers in South Africa. According to this legislation, credit providers should take great care when extending credit. They are not allowed to extend credit to someone who will not be able to make the repayments. Here are some of the responsibilities a credit provider, such as a bank, has when they let you sign on the dotted line of a credit agreement:

They have to conducts a comprehensive affordability assessment to determine whether you will be able to afford the repayments of the loan. They have to ensure that you fully understand and acknowledge the risks, costs and obligations of the credit agreement into which you are entering. They have to be sure that you will not become over-indebted as a result of entering into the credit agreement in question.

How do I know if I have been a victim of reckless lending?

If you can answer yes to one or more of the statements below, you may have been a victim of reckless lending, and should seek the support of a qualified debt counsellor to address the situation:

I took out credit after 2007. My credit provider did not perform an affordability assessment. I did not understand the extend of my repayment responsibilities. I fell in arrears with my repayments even though my financial circumstances did not change. I am now over-indebted due to the credit that was provided to me.

Would you like to find out more about reckless lending and whether your experience has made you a victim of unscrupulous business practices? Get in touch with a Libertine Consultants representative today. We offer a range of debt services and credit services that have been tailored to look out for the interests of the South African consumer. Let us help you pave the way to a more prosperous future.

How to eat healthy on a budget in South Africa in 2019

At Libertine Consultants, we spend a lot of time helping clients to revise their household budgets to make their financial lives easier. This is why we know that shopping for healthy food can be a challenge when you’re trying to cut down on your expenses. However, it doesn’t make any sense to let your health deteriorate due to an improper diet – that will only lead to expensive doctor’s bills later down the line.

So, what is a budget-savvy South African to do if they want to eat healthy, but also want to keep their grocery budget in check? Here are a few top tips:

Plan your meals ahead of time

The simplest way to save money on groceries is to plan your meals ahead of time. This way, you’ll know exactly which ingredients to buy and won’t end up with a trolley full of things that don’t come together in a meal at the end. This approach also keeps you from relying on expensive, often not-so-healthy ready-made meals when time is running out and you hadn’t planned anything for dinner. Sit down as a family on a Saturday, decide on your main meals for each day, and work out your grocery list accordingly.

Do a big cook-off over the weekend

Once you have your grocery shopping done, put some time aside to do a big cook-off. Here are a few meals you can prep ahead of time (Sundays are great for this) to enjoy throughout the week:

Bolognaise mince – just cook the pasta on the day. If you want to go low carb, make some zoodles (a vegetable spiraliser is a great investment for any kitchen). Kids love this mince in snackwiches or tacos as well, so you can dress it up in multiple ways.

An oven-roasted chicken with veg. This can serve as one meal, and once the bulk of the meat is eaten, the rest of the carcass can be boiled along with the leftover veg to make a soup. Simply let it simmer overnight, pull the remaining bits of chicken off the bone in the morning, add some more veg and pulses (e.g. beans or lentils) and let it do it’s thing in the slow cooker throughout the day.

TOP TIP: Want to save on electricity? Get yourself a Wonderbag! This revolutionary non-electric, portable slow cooker will keep your food cooking for hours without any electricity after an initial warm-up on the stove.

Fill up on fruit and veg

One of the best ways to ensure that your body stays healthy and your wallet doesn’t run empty in the middle of the month is to fill up on seasonal fruit and vegetables. Not only are these nutritional powerhouses filled with essential vitamins and minerals that keep all your vital processes ticking over, it’s also super affordable if you buy the stuff that’s in season. Make a point of filling half your plate with a colourful salad and some veggies before you add meat or starch – this will keep your waistline slim and cut down on the amount of expensive animal protein you need to buy.

Following these guidelines will allow you to keep streamline your household expenses while still eating healthily. Keep an eye on the blog in the coming weeks and months for more expert insight into all things budget related. In the meantime, feel free to reach out to a member of our Libertine Consultants team to find out more our debt services and credit services. We are here to help you pave the way to a more prosperous future.

Your guide to your rights as a consumer

Hello, and welcome to the third part of our blog series discussing your rights as consumer in South Africa in 2019! In our first article we took a look at your right to apply for credit, and your right not to be discriminated against when applying for credit. We followed that up with a second article that broke down your right to be given reasons for credit being declined and your right to be given documents in an official language that you understand.

Today we’ll take a look at two more rights you have as a consumer in South Africa, in accordance with the National Credit Act – namely, the right to be given documents in a plain and understandable language, and the right to be given documents related to the credit transaction:

The right to be given documents in a plain and understandable language

Have you ever heard of the term ‘legalese’? It’s used to refer to the difficult language lawyers often use to explain concepts and processes. The South African government decided to help consumers by decreeing that credit providers should provide documents in a plain and understandable language. In short, this means that you are within your rights to request clarification on anything you don't understand on a credit agreement. Or to ask that it has to be written in a more understandable manner.

TOP TIP: If you ever have trouble interpreting your credit report, or require assistance in clearing you credit report of old or outdated information, the Libertine Consultants team can assist.

The right to be given documents related to the credit transaction

When you enter into an agreement with a credit provider they have to provide documents stipulating your agreement in the way that you prefer. You can choose to pick it up in person at their place of business. Or you can ask them to fax or email it to the number or email address of your choice. If you should lose your documentation within one year of receiving the original documents, the credit provider should provide you with a new set free of charge. After a year, you will have to pay the credit provider a small fee for replacement documents.

There you have it – two more rights you have as a consumer in South Africa in 2019, explained. Check back soon for Part IV. If you would like some more information in this regard, or feel that your rights have been dismissed by a credit provider, please feel free to get in touch with Libertine Consultants. We are here to assist you in living an abundant life free from the worry of unmanageable debt.

Struggling with debt? Here are 5 steps to improve your finances.

According to recent statistics released by the South African Reserve Bank (SARB) in its last quarterly bulletin, average South African household debt stood at 72.7% of disposable income. That means that many households in SA are using up to three-quarters of their income to pay off debt, leaving then with only 25% of their salaries to manage their other commitments.

This type of debt can be crippling; it can seem completely impossible to overcome it. However, there are steps you can take to improve your situation. These include:

Get to grips with your debt

You need to know exactly how much you owe each of your creditors. When you’re overwhelmed by the extent of your debt, it can be tempting to ignore the extent of it. However, if you’re going to solve the issue, you need to know the lay of the land. Start by taking the time to figure out how much you need to repay, and at which rates.

Stop taking on more debt

Whatever you do, don’t take any further credit – especially not to pay off the debts you’ve already accrued. This is also a good time to put away any store cards or credit cards you may have. Adopt a ‘plastic money is drastic money’ approach and live within your means.

Work out a budget

Sit down with your household budget and see which expenses you can eliminate. This will require you to differentiate between needs and wants. Needs include rent, fuel, school fees, basic groceries (food, cleaning materials, toiletries), as well as insurance (car, home and health); wants include entertainment, clothing other than the basics, assistance with household chores and garden maintenance, etc. Cut down where you can, compare your big total with your salary and figure out how much you have left over to clear your debts.

Get in touch with your creditors

Get in touch with each of your creditors to explain your situation and try to negotiate lower instalments. In general, creditors are open to receiving smaller instalments rather than nothing at all. As a consumer, you are protected by the National Credit Act, so make a point of reading up about your rights before placing these calls.

Be honest with family and friends

Play open cards with your friends and family; let them understand that you are cutting down on expenses. It will be hard at first, but most people will be supportive once they realise that you are trying to solve a sticky situation.

Do these tasks seem a little daunting? Get in touch with a Libertine Consultants representative to discuss our range of debt services and credit services? Our team of debt experts are here to help you regain control of your finances. Let us help you pave the way to a more prosperous future.

Ground-breaking new debt relief bill signed into law in South Africa

President Cyril Ramaphosa signed a number of important bills at a recent sitting of the South African parliament on 13 August 2019. This includes the National Credit Amendment Bill Act No 7 of 2019, which is poised to have a positive impact on the lives of our nation’s most severely overindebted citizens.

What does the bill mean for overindebted South Africans?

Also referred to as the ‘Debt Intervention Bill’, the new piece of legislation has been tailored to provide relief to low-income workers, in particular those who fall within the <R7500 income bracket.

The first step of the intervention process involves restructuring and giving consumers five years to pay off their debt. In cases where certain individuals are found to be critically indebted, it could also lead to the extinguishing of debt.

To be considered for this write-off, the following criteria will apply: The debt in question cannot exceed R50 000.

The unsecured debt had to have been accrued by means of unsecured credit agreements, unsecured short-term credit transactions or unsecured credit facilities.

The indebted consumer had earned no more than R7500 per month over the prior 6 months. In accordance with the bill, debt counsellors and businesses like Libertine Consultants will also be expected to report suspected reckless lending by financial service providers. This will be done in a bid to curb the reckless extension of credit by these institutions.

SA consumers cautioned to play by the rules

However, the act has also put in place new restrictions on the consumer. It will now be a criminal offence to intentionally submit false information relating to debt intervention. A person who alters their financial circumstances, or a couple who does so jointly, in order to qualify for debt forgiveness or intervention of any kind will also be liable for prosecution.

Find out more about the Credit Amendment Bill Act No 7 of 2019

Would you like to find out whether you would be eligible for debt relief as it pertains to the National Credit Amendment Bill Act No 7 of 2019? Get in touch with a Libertine Consultants representative. Our seasoned team of debt counsellors are on hand to provide you with expert advice and tell you more about our established rage of debt services and credit services. Together we can pave the way to a more prosperous future for you and your family.

Your guide to your rights as a consumer

Welcome back to our series discussing your rights as consumer in South Africa in 2019! Are you ready to find out more about the forward-thinking safeguards that exist in accordance with the National Credit Act? Let’s jump straight in. In our previous article we took at look at our right to apply for credit, and our right not to be discriminated against when applying for credit.

Today we’ll take a look at our second set of rights - the right to be given reasons for credit being declined, and the right to be given documents in an official language that you understand.

How to use your 67 Mandela Day minutes wisely on 18 July 2019

Nelson Mandela International Day is an annual international day declared in honour of Nelson Mandela by the United Nations in November 2009, and celebrated each year on 18 July, which was this great man’s birthday. Today, South Africans honour the 67 years Mandela spent in prison by devoting 67 minutes of their time on this day to make the world a better place.

HOW TO MAKE AN IMPACT WITH YOUR 67 MINUTES THIS MANDELA DAY

Choose a cause close to your heart

Every person has a cause or two that lies very close to their heart. This may be neglected children, under-resourced eldery citizens, animal welfare, the environment, education, etc. When you choose how to spend your 67 minutes this year, choose a cause that really fires you up. If you are naturally inclined towards animals, you could spend the day at a shelter, cleaning, sprucing up, or giving the animals some love. If your heart lies with the plight of children, you could donate your time to improve conditions at a day care centre in a disadvantaged community or arrange an educational outing for a group of youngsters. There are many ways to give back; find a way that works for you.

Give in a way that empowers the recipient

A golden rule of giving charity is to do so in a way that empowers the recipient. For instance, if you donate your time to assist at a homeless shelter, be sensitive to the feelings of the people you encounter there. Engage with them on a warm, personal level and don’t exploit their need (e.g. by taking selfies with someone without asking permission and posting it to social media). The same goes for children and the elderly – be cognisant of your privilege in these situations, and treat everyone kindly.

Use your skills to drive change

Mandela Day is a wonderful opportunity to use your skill set to give back to the community. If you’re a landscape architect or avid home gardener, you could lend a hand at a school or park to plant, weed and generally improve a garden. Writers and photographers can create web content or marketing material for NGOs; DIY enthusiasts and carpenters can lend a hand at community centres or the homes of disadvantaged families, etc. Take a look at your skill set and find a way to put it to good use.

There you have it – a few top tips on making a tangible difference this Mandela Day. At Libertine Consultants, we have decided to a give a FREE credit analysis to 5 clients who sign up between now and the 18th of July. Keep an eye on our Facebook page and Twitter profile to find out more about this offer and how you can enter to stand a chance to be selected. In the meantime, also feel free to reach out to a Libertine Consultants representative if you would like to learn more about our credit services and debt services. We’re here to help you pave the way to a more prosperous future.

Illegal setoffs by SA banks stopped in its tracks by the DCASA

As dedicated debt counsellors who take great pride in our efforts to help overindebted individuals to regain control of their finances, the Libertine Consultants team has had our fair share of disputes with South African banks who offset the accounts of our clients, leaving them unable to meet their monthly financial obligations. This highly contested practice has been a major issue in our industry since 2007, and has caused waves throughout the debt review industry for the past 12 years.

This is why we were so heartened to learn of the landmark ruling passed in the High Court of South Africa in June 2019 that deemed that the common law right to set off will no longer be applicable in respect of credit agreements which are subject to the National Credit Act. Here’s a breakdown of what this means.

What is setoff and why was it legal?

A bank setoff happens when a financial institution like a bank, savings and loan, or credit union removes money from a deposit account—checking, savings, certificate of deposit, or money market account—to cover a payment you missed on a loan owed to that institution.

When debt review was launched in 2007, debt counsellors raised the issue of these questionable money grabs from the start, but the South African banks maintained that they have a common law right to apply setoffs. Paul Slot, current NEC of DCASA (Debt Counsellors Association of South Africa), took up the issue with a special task team in 2009 when he presided as president of the association, and it was agreed that the banks would stop the practice.

However, certain institutions found loopholes in the legislation and continued to withdraw money from customer accounts without their permission. Consumers blamed the debt review process for this practice, and many left debt counselling because these money grabs left them in dire straits every month.

Debt counsellors spend an inordinate amount of time to get the balance of these money grabs back on behalf of their clients, and although some bank cooperated and returned some or all of the money, many complaints were still made to the NCR regarding unsolved disputes.

What was the verdict?

In the most recent legal proceedings in this regard was spearheaded by the NCR, in collaboration with Paul Slot and the South African Human Rights Commission (SAHRC). The NCR obtained a declaratory order on an issue with Standard Bank. The SAHRC was admitted as amicus curia, allowing Paul Slot to present an affidavit with evidence that the effect that setoffs interfere with the carefully constructed debt review process.

This affidavit stated that banks that apply setoff under debt review have a crippling effect on the debtor, since setoff is almost always applied without notice to, or interaction with the consumer. He went on to note that since the introduction the NCA, banks would attempt to sidestep the application of setoff by omitting a clause of this nature in their credit agreements. The banks objected to certain elements of the affidavit in 2018, but their application was denied and the SAHRC was granted leave to present Paul Slot's findings.

As a result, the court declared that, in light of Sections 90(2)(n) of 124 of the National Credit Act 34 of 2005, the common law right to set off is not applicable in respect of credit agreements which are subject to the National Credit Act.

This landmark ruling is a great victory for South African consumers and the debt counsellors who fight alongside them to ensure a sustainable return to economic equilibrium. If you are currently overindebted and feel unable to deal with all your monthly repayments, get in touch with a Libertine Consultants representative to learn more about our debt services and credit services. We are here to help you pave the way to a more prosperous future.

Your guide to your rights as consumer in South Africa in 2019

Living in sunny South Africa can be a bit of an emotional rollercoaster sometimes – there are many things to be happy about, quite a bit to frown about and lots of challenges we have to face as a nation on a daily basis. However, when it comes to our National Credit Act, we have it very good. South Africa’s NCA is seen as one of the most progressive in the world, and has been tailored to look out for the consumer.

When you apply for credit in South Africa in 2019 you are entitled to the following rights:

The right to apply for credit. The right not to be discriminated against when applying for credit.
The right to be given reasons for credit being declined.
The right to be given documents in an official language that you understand.
The right to be given documents in clearly understandable language.
The right to be given written documentation relating to the credit transaction.
The right to confidentiality of personal information. The right to access and challenge information held by a credit bureau. The right to receive periodic statements.

DID YOU KNOW?

Many South Africans never apply for a credit report before applying for credit. It is important to draw a credit report and ensure all your information is updated and correct on your profile. If you have trouble interpreting your credit report, or require assistance in clearing you credit report of old or outdated information, the Libertine Consultants team can assist.

In this article we will be discussing the first two rights you are guaranteed by the National Credit Act, namely:

The right to apply for credit

This provision is covered in section 60 of the National Credit Act. The NCA provides every person or company the right to apply for credit from any credit provider. However, this does not prevent the credit provider from refusing their application. Their reasons for the refusal should be in accordance with the credit risk evaluation processes.

The right not to be discriminated against when applying for credit

This provision in covered in section 61 of the National Credit Act. This protects consumers from being discriminated by a credit provider. A credit provider is forbidden from discriminated on the basis of race, age, political affiliation, sexual orientation, religious belief, or affiliation to any particular trade union. A consumer who is of the opinion that their right has been violated they can approach the Equality Court or may lodge a complaint with the NCR.

There you have it – your first two rights as a consumer in South Africa in 2019 explained. If you would like some more information in this regard, or feel that your rights have been ignored by a credit provider, please feel free to get in touch with Libertine Consultants. We are here to assist you in living an abundant life free from the worry of unmanageable debt.

5 Father's Day gift ideas that won't leave you broke

Father’s Day 2019 is right around the corner – have you decided on a gift for the special dad in your life? If you’re feeling a little cash-strapped and unsure about how to find a suitable gift that won’t leave you broke, we’ve got great news. At Libertine Consultants we always advocate for budget-friendly gifts – after all, no parent in the world would want their kids to go into debt to show their love and appreciation. To this end, we’ve rustled up a few gift ideas that are easy on the pocket.

Tidy something up

Wash the bakkie, clear out the storage room or offer your help as a garage-cleaning assistant (most fathers are quite particular about their garages, so arranging it on your own might not be the best idea). Mowing the lawn and taking care of the recycling fall in this category as well. Do it without being asked and consider extending this service for a week (or month) or two.

Play on those heart strings

If you’re musical, writing your dad a song is something that will get even the most staunch bloke’s waterworks going. Alternatively, you can simply write a truly heartfelt letter to thank your dad for everything he has done for you, or even make a video in which you express it in person. This type of thing is worth so much more than another oddly patterned tie or pair of dress socks

Do something you used to do with them as a kid

Did you and your dad enjoy shooting hoops, or going on hikes when you were younger? Perhaps you played chess or got all caught up in crazy Uno tournaments. Whatever the case may be, get back to it this Father’s Day. Set it all up and invite the old man to step up to the plate once more.

Help them set up their tech

While certain members of the Baby Boomer generation have a solid handle on modern-day technology, most of them aren’t what we’d call digital natives. This Father’s Day, offer to help your dad out with this tech. Load useful apps to his mobile; pair his personal fitness device with his phone; set up Netflix or Showmax; or simply organise his external storage device. There are countless ways to streamlines things from a technology standpoint if you take the time to evaluate your dad’s individual setup.

Make their favourite meal

This is an oldie but goodie. As South Africans, we are taught to show our love with food. It’s an integral part of our culture. Whether you choose to braai your dad a chop, serve up a Durban-style curry, whip up some bobotie, spoil him with smoorsnoek, pile it on with a home-made Gatsby or make a proper roast with all the trimmings, pour your heart into it and watch them melt.

There you have it – five Father’s Day gift ideas that won’t leave you broke this year. Keep an eye on the blog in coming weeks and months as we share more helpful advice on making sense of your finances in 2019. In the meantime, feel free to reach out to a Libertine Consultants representative if you would like to learn more about our debt services and credit services.

What's the impact of a default judgment on your credit profile?

In the 3-month period between December 2018 and February 2019, the number of default judgments for debt recorded had increased by 3.5%. Do you know what a default judgement is and how it affects your credit profile?

At Libertine Consultants, one of the services we offer is credit analysis, which offers our clients a report of their credit history so they may understand how potential creditors view them. One of the first things a loan institution will look at is whether you have a default judgement.

What is a default judgement?

A default judgement is the result of going back on a credit agreement with a creditor, e.g. a bank, store, municipality, doctor, or anyone who extended you a line of credit. This happens when you fail to pay your accounts on time and don't communicate with your creditor to make a repayment plan.

When the creditor takes legal action, you will receive a summons. If you ignore the summons, fail to plead or don't appear in court, the creditor will continue to present the information to the judge, who will then likely grant a default judgement. This means the court now officially orders you to pay the debt.

What is my credit profile?

Your credit profile is a way for potential lenders to track your previous repayment habits to see how risky it would be to give you credit. As such, when you apply for any form of credit (i.e. home loans, study loans, buying furniture, opening a clothing account), the credit supplier will get in touch with one of the credit bureaux that operate in South Africa to get access to the information regarding your previous credit management behaviour that these companies have on file.

In short, they want to see if you paid in time, skipped any payments and generally stuck to your repayment agreements with other businesses that have extended you credit.

How does a default judgement impact my credit profile?

In truth, not positively at all. It will lower your credit score to the point where it is very unlikely that you will be able to get any credit at all. Potential creditors take this very seriously. A default remains on your credit report for two years or one year, depending on the description of the default.

Subjective classifications of consumer defaults remain for one year. Consumer default classifications where enforcement action is taken - such as bad debt written off or handed over, credit card revoked or repossessed - remain on your credit report for two years. A default judgment is the final step in the legal process and therefore has more implications than a simple default status. It remains on your credit profile for a maximum of 30 years and can only be removed after it has been paid-up in full.

What can I do to improve my credit profile?

It’s quite simple – don’t take out credit you can’t afford to repay, pay your accounts on time and, if you are already in the situation where you are in arrears, take it up with your creditor in person to structure a repayment plan. If you feel that your finances are out of control to the point where you cannot make this happen, get in touch with a debt counsellor, such as Libertine Consultants, so you can restructure your overall debt and make it more manageble.

There you have it – a concise look at default judgements and how it impacts your credit profile. Please feel free to get in touch with a Libertine Consultants representative if you would like to learn more about our credit services and debt services. We can help you to clear your credit record so you can pave the way for a prosperous financial future. In the meantime, keep an eye on the blog as we share more helpful advice on staying on top of your finances in South Africa in coming weeks and months.

5 Things you need to know about the 2019 budget speech

When Finance Minister Tito Mboweni delivered his budget speech in parliament on 20 February 2019, there was one group of South Africans who were listening avidly, and a second group who were busy sticking their heads in the sand as far as it would go. If you form part of the second group, we get it 100% - it can be very disheartening to get bad news every time you switch on the evening news. This is why soapies and cooking shows are so popular; it whisks us away from reality to enjoy a brief reprieve.

However, if you want to stay on top of your financial planning in South Africa in 2019, it pays to know what’s cooking in the national budget. Here are a few key take-outs from the Minister Mboweni’s speech in March to get you up to speed:

Indulgences are being taxed quite heavily

Sin tax is going up! Beer goes up by 12 cents, a 750 ml bottle of wine by 22 cents, a 750 ml bottle of sparkling wine by 84 cents, a bottle of whiskey by R4.54, a pack of 20 cigarettes by R1,14, and a cigar by about 64c.

Travelling gets more expensive

Planning an extensive road trip holiday in the near future? You’d best factor in that fuel levies are about to increase by 29 cents per litre for petrol and 30 cents per litre for diesel. This is also likely to impact the cost of using public transport like taxis and busses.

Grant recipients are getting a reprieve

Pensioners, disabled individuals, war veterans and care dependents will receive an R80 increase; while foster care grants go up by R40. Child support increases to R420 in April and R430 in October.

Informal settlements will benefit from development

R14.7 billion has been set aside for the upgrading of service delivery platforms in informal settlements over the course of the next two years.

Parliament will be keeping overheads low

Members of Parliament, provincial legislatures and executives at public entities will not be receiving salary increases in 2019.

There you have it – 5 things you need to know about the 2019 South African budget speech. Keep an eye on the blog in coming weeks and months as we share more expert insight into the financial landscape in sunny SA. In the meantime, feel free to reach out to a Libertine Consultants representative to learn more about our credit services and debt services.

How finance pros are adjusting their

We recently published a summary of the most pressing changes that were addressed during the 2019 South African Budget Speech. While some of these shifts were positive, and others were less so, the fact remains that consumers have to be nimble in their response to the national budget allotment if they want to remain ahead of the curve and keep their spending in check. Here are a few simple ways in which finance pros are adjusting their spending after the 2019 Budget Speech (and you can too!):

Travel wisely

Fuel is going to become even more expensive as we head into the second half of 2019. Fuel levies will increase by 29 cents per litre for petrol and 30 cents for diesel. These below-inflation increases in fuel taxes together with the carbon tax on fuel will raise R1.3 billion for government, which is good, but it also puts a lot of strain on cash-strapped consumers.

What can you do? Try to swop out road trips for holidays closer to home; entertain at home; discuss the option of working from home with your employer if your industry allows for remote work.

Check your diet

The sugar tax (under the promotion of health levy) will increase to account for inflation, moving from 2.1 cents per gram in excess of 4 grams of sugar per 100ml, to 2.21 cents from 1 April 2019. This means that consumer products with high sugar content will become more expensive from here on out.

What can you do? Sugar tax is the government’s way of encouraging us to be healthier. Now is the time to adapt your diet – move away from processed foods like baked goods and soft drinks, and include more whole foods like vegetables, fruit, nuts, eggs, fish, etc.

Reconsider those vices

Sin tax is going up! Beer goes up by 12 cents, a 750 ml bottle of wine by 22 cents, a 750 ml bottle of sparkling wine by 84 cents, a bottle of whiskey by R4.54, a pack of 20 cigarettes by R1,14, and a cigar by about 64c. It may not seem like a lot, but it tends to add up.

What can you do? Sin tax is yet another move on government’s part to gain revenue for the national coffers while simultaneously shining a spotlight on the health concerns caused by smoking and heavy drinking. Curb your intake of these substances accordingly to save some money and boost your health.

There you have it – a few adjustments you can make to your spending in 2019 to ensure that your budget remains manageable despite the shift in the South African financial landscape. Keep an eye on the blog in coming weeks and month as we share more expert insight into prudent management of your personal finances. In the meantime, feel free to get in touch with a member of the Libertine Consultants team to learn more about our credit services and debt services.

Are you one of the South Africans who

If you have ever been in a situation where you felt unable to handle your debt, you will know what it would mean if someone was willing to throw you a lifeline that might enable you to walk away from the whole mess unscathed. It would give you the opportunity to start from scratch and rebuild you life without the looming shadow of countless creditors. Sound too good to be true? This is exactly what the South African government is planning to do for a certain group of indebted consumers.

Here’s a concise summary of the National Credit Amendment Bill, which was passed by the National Council of Provinces, and is now on its way to President Cyril Ramaphosa, who will be the one to sign it into law.

How would the proposed debt forgiveness work?

The bill has been tailored to assist consumers who have no way of getting out of their debt crisis themselves. Under this legislation, these consumers' debt will be suspended (in part or in full) for up to two years. If, in that time, the applicant's financial circumstances do not improve, the debt may be forgiven altogether.

Who would be eligible to have their debt written off?

You may be eligible to have your debt forgiven in 2019 if your unsecured debt is under R50 000 and was accrued by means of unsecured credit agreements, short-term credit transactions and credit facilities only, and you earned less than R7500 for six months running. Please note: The new bill has necessitated additional safety measures to ensure that consumers who aren’t eligible can’t ‘sneak’ their way into debt forgiveness. Intentionally submitting false information related to debt intervention is now a punishable offence. This includes altering your own financial circumstances or altering joint financial circumstances to be held eligible for debt intervention.

What are the downsides?

While there are no downsides to debt forgiveness when it comes to the consumer initially, South African banks aren’t too happy about the situation, which is understandable. If the bill is passed, the SA banking sector can lose up to R25 billion in unpaid debt. In the wake of these losses, the banks will be forced to make lending conditions a lot tighter to safeguard themselves, which will make it a lot harder for financially-strapped consumers to secure credit.

There you have it – a concise explanation of the new debt forgiveness legislation that will soon impact on the livelihood and wellbeing of South Africa’s most vulnerable citizens. Keep an eye on the blog in coming weeks and months as we share more insight into the current economic climate and how you can keep your finances on an even keel.

In the meantime, feel free to reach out to a Libertine Consultants representative to learn more about our debt services and credit services.

5 Cheap & cheerful date ideas for fun-loving South Africans

Valentine’s Day may have come and gone, but that doesn’t mean there’s no more need for romance for the rest of the year. At Libertine Consultants, we realise that it can be a little tough to treat your partner to some quality time if your budget is tight. Fortunately, we know of a few ways to enjoy a fun and affordable date without breaking the bank.

Here are five of our favourite cheap & cheerful date ideas for fun-loving South Africans:

Walk & talk

Get up early, lace up your trainers and enjoy a sunrise hike along a safe route in your vicinity. Pack a thermos with hot tea or coffee and some killer sandwiches to enjoy when you’ve completed the route and worked up an appetite.

Be your own tour guide

Be a tourist in your own town or city! Make your way to your tourism office to find out about heritage walking routes you can do. In Cape Town, for instance, you can take yourself to no less than 22 spots of historical significance in and around the V&A Waterfront alone. Best of all – you can see it all for FREE by grabbing a map at the Information Centre and following it at your own pace.

Check out your community calendar

Support your local community by attending concerts, markets and other events. Even the smallest town has a school concert every now and again. Dress up and make an occasion of it! Pack some snacks and have a little picnic afterwards.

Be a little childish

Just because you’re all grown up, it doesn’t mean you don’t get to act like a kid every now and then. Set the scene for an afternoon of child-like amusement by indulging in all your favourite childhood treats with your partner. Light a fire to braai marshmallows, put out the sprinkler and run through it, blow bubbles, fly a kite or simply lie on the grass and tell secrets while you gaze up at the sky.

Get creative in the kitchen

Cooking together can be loads of fun, and you don’t have to spend a fortune on expensive ingredients either. Gather all the bits and bobs you have left in the fridge and food cupboard and challenge yourselves to make something tasty. Even if it ends up being a bit of a fail, you’ll still be spending time together doing something creative.

These are just a few of the fun things you can get up to without placing undue strain on your budget. Keep your eye on the blog in coming weeks and months as we share more helpful advice on managing your finances like a pro in 2019. In the meantime, feel free to reach out to a Libertine Consultants representative to learn more about credit services or debt services.

5 Budget-friendly Valentine's Day gift ideas

Valentine’s Day is right around the corner, and we’ve got some great news – this year you don’t have to spend a ton of money to treat your partner to something special! At Libertine Consultants we always advocate living within your means, so we’ve made a list of budget-friendly gift ideas that will show your love without taxing your wallet. Here are a few of our favourites:

Go picnicking (in your backyard)

Restaurant dinners can be very expensive, and most eateries are packed on Valentine’s Day. This year, dress up your backyard with some fairy lights or candles and treat your partner to a picnic in your backyard (or on your balcony, or even on your lounge floor).

Make a playlist

Every couple has ‘their’ songs. Songs that played a pivotal role in your relationship or remind you of happy moments you spent together. Make your partner a mix CD or digital playlist of all the songs that mark your history together and send them a link. If you’re going the CD route, you could even decorate the cover with a picture and a title.

Plant a live tree

Flowers get super pricey around Valentine’s Day, plus it doesn’t keep all that long. Planting a live tree with or for your loved one is a great way to show your affection, plus it’s good for the environment to boot. If you don’t have a yard, you can always plant a smaller tree in a container that you can keep on your balcony, or even in the living room. TOP TIP: Having live plants in your living space = more oxygen, which means better cognitive functioning as well.

Create a memory nook

Digital photos are all good and well, but there is something special about printing photos and putting it in a frame. Celebrate your love for your partner by printing a few of your favourite pictures of the two of you together and starting a memory nook somewhere in your home or flat. Frames can be bought for cheap at supermarkets, or you could even find some for next to nothing from a thrift shop.

Go on a free outing

Most towns and cities have certain touristy things you can do for free. Some art museums don’t charge entry fees at certain times of the day, and botanical gardens are normally free to visit. Do a bit of research and find something that you can do together without spending a single cent. If you don’t know where to start, get in touch with your local tourism office – they’ll be happy to give you some pointers.

These are just a few of the many budget-friendly Valentine’s Day gift ideas you could use. Get a little creative, and always remember that it’s the thought that counts. Keep an eye on the blog in coming weeks and months for more helpful advice on managing your budget in 2019.

In the meantime, feel free to get in touch with a Libertine Consultants representative if you would like to learn more about our credit services and debt services.

3 Reasons to keep your budget in check in 2019

The holidays are over and with schools back in session, it’s back to reality for most South Africans. January is a notoriously tough month for consumers everywhere, and 2019 has certainly not been any different. At Libertine Consultants, we are in the process of assisting many overindebted consumers who spent too liberally over the festive season, and now need to take their finances in hand to ensure that they can make ends meet for the rest of the year.

Whether or not you overspent over the holidays, there are quite a few reasons to keep your budget in check in 2019. Here are three of the most important reasons why South Africans should be tightening their belts this year:

More than 25% of the workforce is unemployed

One in four South Africans over the age of 18 and under the age of 60 are currently unemployed. That means a quarter of the workforce has no source of income. These are staggering statistics. The situation is also not poised to get any better, as key jobs sectors such as mining and industry are expected to continue layoffs and retrenchments. Additionally, the uncertainty about the ANC’s land expropriation bill has dampened foreign investment interest, which is required to create jobs.

The agricultural sector is under severe pressure

The drought of 2018 is having an extended impact on the economy, as the much-reduced maize harvest drives up food costs throughout the country. Additionally, many farmers are considering a change of occupation in the face of land expropriation without compensation, leading to an even more unstable food supply chain and increased prices.

Reckless lending abounds

While most accredited financial institutions will put a consumer through a rigorous approval process before extending a line of credit, there are unscrupulous lenders out there who are only in it for the returns. According to the latest figures released by the reserve bank, South Africa's total consumer debt currently stands at R1,73-trillion. The World Bank has also recently ranked Mzansi as one of the most indebted countries in the world.

In a social climate such as ours it can seem that going into debt is normal because everyone else is doing so. Don’t feel pressured to live a life you cannot afford – live within your means, save, invest and build your wealth slowly.

These are just a few of the reasons to keep a closer eye on your household budget in 2019. Keep an eye on the blog in coming weeks and months as we share more helpful advice on making wise decisions where your finances are concerned.

In the meantime, feel free to reach out to a Libertine Consultants representative to learn more about our debt services and credit services.

What is inflation & how does it affect your bottom line?

Inflation is one of those buzzwords that often make its way into conversations about money and budgeting. Do you know what inflation is and how it affects your bottom line? There is no need to feel bad if you don’t – according to recent report less than 25% of all South Africans knew the exact definition and impact of this financial phenomenon. Today we give you a concise rundown on the most important things you need to know about inflation in South Africa and why you should keep an eye on it when you calculate your household budget.

What is inflation?

In essence, inflation is the increase in the cost of goods and services over time, which is measured as an annual increase. In South Africa, the Stats SA Consumer Price Index (CPI) measures the price changes in consumer goods and services like clothing and food. The price changes are measured from the point of view of the consumer and published every quarter.

How does inflation affect your bottom line?

As inflation rises, the money you have effectively buys you a smaller portion of a given product or service. In short - every time inflation increases; your money is worth less because your purchase power decreases. E.g. if inflation is at 3%, the jug of milk that costs you R12 today will be marked at R12.36 this time next year. In an ideal world our salaries will increase in line with inflation so we can continue to cover our living costs. However, this is often not the case.

This is why it is important to keep inflation in mind when you revaluate your household budget each year. Keep an eye on the CPI to determine by how much the prices of your day-to-day groceries and consumables are likely to rise over the course of the year and build this into your budget by adding a margin for error. This way, you won’t suddenly have a whole lot of month left at the end of your grocery money when prices inevitably rise again.

There you have it – a concise look at inflation and how it affects your bottom line in the long run. Keep an eye on the blog in coming weeks and months as we share more helpful advice on making wise decisions where your finances are concerned. In the meantime, feel free to reach out to a Libertine Consultants representative to learn more about our debt services and credit services.

New financial challenges South Africans should get ready for in 2019

A happy 2019 to one and all! At Libertine Consultants, we are very excited about the year ahead. Our hope is that we will go on to help as many overindebted South Africans as possible to overcome their financial struggles, so they may lay the groundwork for a more prosperous future. Are you wondering what you should be doing to safeguard your livelihood and make sound financial decisions in 2019? Here are a few financial challenges that are coming our way in the year ahead:

Increased repo rate = SAVE

The South African Reserve Bank raised the national repo rate by 25 basis points from 6.5% to 6.75% in November. The repo rate is the benchmark interest rate at which the central bank lends money to other banks. Changes in this rate affect the prime lending rate, which is the rate banks use as a starting point to calculate interest rates for their clients. As such, individuals who are paying off loans will have to contend with a hike in the rate of monthly repayment. The rate is also likely to rise again later in 2019, so it is imperative to trim the fat on your household budget as much as possible, so you are able to absorb these costs comfortably.

A recurrence of drought could affect food prices

While the severe water restrictions in the Western Cape has been relaxed somewhat after a good rainy season, we are not out of the woods where the drought cycle is concerned. It is more than just a once-off occurrence. Climate change is a reality, and it affects our food growth potential across the agricultural sector. Food prices are likely to remain high and increase as water becomes scarcer. Plan your meals ahead, shop intelligently, and plant a food garden if possible. There is no more room for waste.

Ongoing reckless lending

Reckless lending is rife in South Africa. As consumers, we need to be aware that just because a financial institution or service provider is willing to provide us with a line of credit, it doesn’t mean it’s a good idea to overextend ourselves in this way. The National Credit Act No. 34 of 2005 first introduced the concept of reckless credit or lending in South Africa. The Act aims to promote responsible credit granting and use, and for that purpose prohibits reckless credit granting by credit providers. Don’t go into debt in 2019 if you can avoid it. If you feel that you have already been the victim or reckless lending practices, get in touch with a debt counsellor who can assess your situation.

These are a few of the most prominent challenges South African consumers are going to face in 2019. Keep an eye on the blog in coming weeks and months as we share more valuable insight into the country’s financial landscape and what you can do to ensure that you pave the way for prosperity throughout the year ahead.

In the meantime, feel free to reach out to a Libertine Consultants representative to learn more about our credit services and debt services – we are here to help.

How to enjoy a cost-effective festive season

It’s the most wonderful time of the year! The holidays are here, school is out – it’s time to kick back, relax and spend some time with your loved ones. However, if you’re feeling the pinch of a strained wallet this festive season, the thought of all the revelry and gift-giving ahead could be stressing you out. Fortunately, there are ways to enjoy a cost-effective festive season without having to feel like a Grinch.

Here are our top tips to keep from overspending over the holidays:

Go the Secret Santa route

Will the whole family be coming together for Christmas? If so, go the Secret Santa route! Toss everyone’s names in a hat, have everyone draw at random and settle on an amount that each participant can spend on their gift. This way, everyone can open a present on the day, and there is none of the discomfort that arises when certain gifts quite obviously cost more than others.

Enjoy your town like a tourist

If you’re saving money by staying at home over the holidays, there are still ways to have fun. Every city and town in South Africa has at least two or three touristy things that are recommended to visitors. When last did you enjoy an outing to your town’s tourist spots? Maybe there is hiking route you haven’t tried, or a gorgeous park where you could enjoy a picnic and a fun afternoon of reading and hanging out under the trees? Try to see how many free things you can rustle up to do – turn it into a family challenge.

Plan your meals & get creative

We tend to relax our routines over holidays, which can lead to needless expenditures on fast food and ready meals when we realise that the fridge is looking a bit bare or no-one feels like cooking. A simple way to save money is to plan your family’s meals ahead so you know what to shop for, and do to a big shop once a week so there is no room for unnecessary spending.

Following these guidelines will pave the way for a cost-effective festive season that won’t cause any money-related meltdowns in January. We are always so worried about creating an impression of abundance, that we often forget that the simplest way to pave the way to a prosperous financial future is to live within our means.

Enjoy a wonderful festive season with your loved ones over the holidays and keep an eye on the blog in 2019 for more helpful advice on managing your finances one good habit at a time.