Budgeting is the best way to overcome financial stress of 2021

As we head into the new year, many South African consumers remain on the backfoot where the financial impact of the COVID-19 pandemic is concerned.

While there may be a glimmer of light at the end of the tunnel in the form of a trail vaccine, as well as a reopened economy, most people are still nervous about the possibility of further lockdown measures, as well as the effect curtailed economic activity has had on their income throughout 2020.

According to the findings of a recent poll by credit bureau TransUnion, South Africans are struggling to keep up with their financial obligations to the extent where the average monthly shortfall is R7000+ per household. To cover these expenses, many are taking radical steps by cashing out investments or using funds that have been earmarked for retirement.

However, these are just temporary stopgaps. The recession that is following in the wake of the extended lockdown period in South Africa has not yet reached its peak by a long shot, and the year to come is likely to be a tough one on most wage earners – not to mention the 30.1% of citizens who are unemployed.

This begs the question – what is the average household to do in order to keep things on an even keel as everything settles back down? The honest answer is that we all need to tighten our belts and focus on essentials for a while.

Here are a few things to consider when you look at your household budget for 2021:

What are my non-negotiable expenses? This includes things like your rent/bond repayments, electricity, municipal payments, school fees, data, and food. What are my expenses that can be trimmed down? Take a look at expenses like medical aid, retirement annuities, household- and car insurance to see if there is a way to restructure it (e.g. to move it all to one umbrella provider), or to lower it slightly (e.g. by bringing your annuity rate down for a while). What are expenses that I can avoid altogether for the time being? Life has to be lived, this is true, but when times are tough there are certain luxuries (even small ones) that need to be placed on the back burner. For instance, instead of buying fruit and veg from a major retailer, you can support a local vendor who may not have export grade produce, but sells it far more affordably. Or, instead of buying five new pieces of clothing for the season, you could rather find ways to reinvent clothes you already have, or add one new accessory to keep your look current.

In short, budgeting remains the best way to overcome the financial stress of 2020. If you feel that your finances are out of control, feel free to reach out to a member of the Libertine Consultants team for advice. We offer a variety of debt and credit services that have been tailored to ease consumer pressure.

What happens once I have my debt review clearance certificate?

Working at a debt review agency like Libertine Consultants can be a little strange at times – for one thing, unlike other businesses, we see it as a good thing when our clients don’t need us anymore. For most companies that would mean they did something wrong, but in our line of business it means we did our job well, and our clients are now free to go on and live their lives free from the shadow of debt.

In the course of providing over-indebted South Africans with our comprehensive range of debt services and credit services, there are a few things we are asked almost every day. One of the most frequently asked questions is ‘what happens once I have my debt review clearance certificate?’.

This makes sense; after all, when you take the big step of admitting that you need help to regain control of your finances, you want to know when you will be able to take that big sigh of relief and get on with living your life. So, in short, here’s what you need to know:

What exactly is a debt review clearance certificate?

It is a letter issued to you by your debt counsellor that states that your debt has been settled in accordance with your debt restructuring plan. This means that all of your unsecured debt has been paid up; that (where applicable) your bond or mortgage payments and other long-term payments are up to date; and that your debt counselling fees have been paid as well. Your debt counsellor will distribute this notice to all of your credit providers, as well as the relevant credit bureaus.

Does receiving a debt review clearance certificate make me eligible to secure new lines of credit?

The short answer is no, not straight away. You need to factor in the time it takes for your credit providers to check in with the credit bureaus to ensure them that your debt has been paid up, and then some more time has to be allowed for the bureaus to update their records. To play it safe, assume that you will not have access to any new lines of credit for at least three months.

Also keep in mind that your credit score is not going to be great just after debt counselling. Give it some time and allow the credit bureaus to adjust your credit score upward before you apply for any additional credit. In fact, if possible, try to steer clear of taking on any debt for at least a year if you can. Try to live within the means of your income for a while with the advice provided to you by your debt counsellor.

There you have it – what to expect once you have your debt review clearance certificate, in a nutshell. Keep an eye on the blog in the coming weeks and months for more expert insight into everything associated with debt review in South Africa. In the meantime, feel free to reach out to a member of the Libertine Consultants team if you want to learn more about the services we offer.

What do debt consolidation services cost?

If, like many South Africans, you are currently feeling the effects of the curtailed economy and wondering how you’re going to keep up with your debt repayments in months to come, you may be considering debt consolidation services.

At Libertine Consultants, we understand that this is not an easy decision to make. When you choose to apply for debt consolidation, you are admitting to yourself and the world at large that you need help to manage your finances, and this can be very tough. However, we’re here to tell you that it is perhaps the bravest thing you can do.

Making this decision will be the first step towards regaining control of your finances and ensuring a prosperous future for yourself and your family. Once your debt is under control, you can go on to make sound financial decisions that will pave the pay for a far less stressful lifestyle in years to come.

This brings us to the question of cost. After all, when you’re trying to keep your expenses in check, the last thing you want to do is add to your mounting debt in order to sort out your finances.

HOW MUCH DOES DEBT CONSOLIDATION COST?

Happily, we have some good news in this regard. Debt consolidation, also referred to as debt counselling or debt review, is governed by the National Credit Act, and South Africa’s credit act is one of the most progressive in the world. It was written to protect the consumer.

As such, all debt review fees are charged in accordance with the guidelines set by the National Credit Regulator, including: • A R50.00 application fee. • A fee equal to your first monthly instalment (subject to a maximum amount of R9000 and determined after deducting your monthly expenses from your monthly income). • An after-care fee of 5% of your instalment for a period of 2 years, 3% thereafter.

There are usually also legal fees involved. These have to be disclosed to you upfront and will be deducted from your second monthly instalment.

IF I HAVE TO PAY THESE FEES, HOW WILL I ALSO PAY MY CREDITORS?

Once you go under debt review all payments to creditors are legally ceased for up to 60 business days. The debt counsellor’s fees and any legal costs that may be incurred are deducted from your first and second monthly instalments; your creditors receive payment from the third month onward.

As you can tell, the debt consolidation process has not been tailored to punish overindebted consumers – it’s been created to help. If you have any more questions about the costs of our debt services, or how it works in general, please feel free to get in touch with a Libertine Consultants representative. We’ll be happy to answer any questions you may have.

Affordable ways to make your household more cost-efficient

Let’s not beat around the bush, it’s been a tough year. Nations around the globe are feeling the effects of curtailed economies due to the impact of shutdown initiatives to curb the spread of the COVID-19 virus. South Africans, in particular, have had to adopt to some of the most stringent lockdown regulations put in place the world over.

Wrap your geyser

Wrapping your geyser with an insulation blanket is a very affordable and effective way to cut down on your electricity bill. Because the geyser unit itself is insulated, it uses less electricity to warm the water in the cylinder.

Harvest rainwater

Putting up a tank and rigging your gutters to capture rainwater generate some up-front costs, but once the water harvesting system is in place, you’ll enjoy the benefit of being able to water your garden without tapping into the municipal grid. In fact, there are ways to hook the tank up to your home as well, which means your harvested water will come out of the taps. Although this water is not 100% to drink, it can be used to wash, clean and bathe.

Plant a vegetable garden

Planting a vegetable garden is one of the simplest ways to save money – and it’s good for you mentally and emotionally as well! Plus, everyone can do it, even if you live in a flat. Even if you start out with a few containers of herbs on your kitchen windowsill, you’ll still be saving the money you’d be spending every time you buy dried herbs to use in your cooking.

Compost your kitchen scraps (or make stock!)

Get in the habit of keeping vegetable scraps and fruit peels aside to make your own compost. Again, this can be done in a space as small as a balcony. Even if you don’t end up using it yourself due to lack of a garden, you can always donate it to a school, park or charitable food growing organisation in your community. Alternatively, you can keep vegetable scraps in a container in the freezer until you have enough to make your own veggie stock – another simple and effective way to save.

These are just a few of the changes you can make around your home to make it a little more cost-efficient. Initially, the savings may seem small, but it will add up to quite a tidy sum over the course of months and years to come as you continue to enjoy the effects thereof.

Implementing these kinds of changes also has an impact on the way we think about our consumption of consumer goods in general, and is likely to make you think twice before loading something in your trolley at the supermarket when you go for your weekly shop.

Keep an eye on the blog in coming weeks for more valuable insight into living a more cost-effective life. In the meantime, feel free to reach out to the Libertine Consultants team for info on our debt services and credit services if you feel your finances are out of hand. We are here to help you pave the way to a more prosperous life.

Creative Ways to Shop on a Budget

A survey by Gallup in 2019 found that only 32% of Americans maintain a household budget. Roughly half of Americans are living paycheck to paycheck, meaning many of us have to get creative in how we shop for things like groceries, clothes, and entertainment.

Living on a shoestring budget can be stressful, but it is possible with some of these creative tips to shop and make the most of what you have.

Grocery shopping on a budget

Food tends to be one of the biggest spending categories in anyone’s budget. The USDA estimates that Americans spend an average of 6% of their budget on food; 5% of income also goes to dining out. How can you stretch that grocery shopping budget to go even further?

First, time your shopping trip to capitalize on sales and promos: Wednesdays: The middle of the week is often when grocers release their weekly circular. “You'll have first dibs on sale items for the week ahead and, if you're lucky, the store may still honor price reductions on items you forgot to pick up from the previous week's sale,” says one expert.

Avoid Tuesday and weekends: Weekends tend to be busier as people shop on non-workdays. Tuesdays can also be crowded as other shoppers try to take advantage of last week’s expiring deals, and therefore sale items go quickly.

Shop late or early: The hour before closing is when some grocers reduce prices on bakery items or produce items that won’t last until the next day. Early in the morning is also when there is less competition for sale items.

Next, before you head to the store, download an app. Not just any app, but one that gives you discounts: try Food on the Table, an app that lets you type in your food preferences and then generates a list of recipe options based on current promotions at your go-to grocery store. Or, try Ibotta, an app that lets you retroactively apply coupons to items you purchased by scanning your receipt and claiming deals. Many grocery stores also have apps that deliver exclusive offers and digital coupons.

Finally, put your dining out budget into your grocery shopping budget. A meal at a fast-food restaurant costs around $8; if you stop eating an $8 lunch every day during the workweek, you can save $40 a week ($160 a month!).

How to budget for an apartment

Rent is a big budget item for most people, and there are lots of hidden costs in budgeting for an apartment. Whether you’re on the hunt for a new lease or looking to reduce your utility costs and other apartment expenses, there are a few key things to consider when budgeting for your apartment.

First, if you’re looking to sign a new lease, try to find an apartment that’s close to public transportation. Longer-term leases (a year or more) tend to be cheaper, as the landlord doesn’t have to search for a new tenant or spend on renovations as often. If there are fixes that need to be made, offer to do them yourself in exchange for a discount on the security deposit.

If you’re in an apartment and hoping to save on utility costs, go beyond basic steps like turning off lights and turning down the heat. Think about turning off the devices that consume energy in a passive way, like your microwave and water heater that you aren’t using constantly. Winterize your apartment to cut your cooling and heating bills (winterize is a bit of a misnomer, as many of these steps can also keep your apartment cool in the summer). And, avoid running your energy-intensive appliances – washing machine, dishwasher, or dryer – during “peak hours”. Electricity companies tend to discount rates during the night when fewer people are using their grid.

Thrifting and other shopping ideas

What about other expenses: clothes, gifts, and entertainment? There are creative ways to shop on a budget for these items too.

Thrifting is an obvious choice for saving your clothing budget. Many shoppers also turn to fast-casual brands like H&M and Forever 21 – but be aware that those retailers may be more expensive in the long-term. Spending $10 on a t-shirt that lasts fewer than 10 wears is worse than spending $50 on a shirt you’ll own forever. “Unless it's practically free, you're better off buying clothing items from good brands with a reputation for well-made items,” wrote The Simple Dollar.

Look to see if clothes are well made by checking the seams and material. Seams on a good quality item will be perfectly straight, with no dangling strings; any patterns should match up well. The material should be higher-quality. Look for natural fibers and blends like wool, and avoid synthetics like polyester.

For gifts, go for something thoughtful rather than expensive. Find gifts that are unique to the recipient and require time, rather than cash. For instance, give someone the gift of time by babysitting or hiring a house cleaner. Give your family member a recipe book of meals from your childhood. Or, start a new tradition – holiday cookie-baking, for instance – that leads to memories rather than things.

Shopping on a budget isn’t always easy. Sometimes, what you really need is a little Lift to cover a shortfall or meet a financial emergency.

This article is contributed by LiftRocket.

Public schooling in SA costs up to R1.6 million per child

Having a child is an enormous responsibility, especially when it comes to securing their academic future. If this was not apparent enough before, it is certainly become even more so since the economic impact of the COVID-19 lockdown in South Africa has started to make itself known.

Many parents who were capable of meeting all their financial responsibilities before lockdown commenced, suddenly found themselves in a position where they had to set up meetings with school representatives to structure payment plans due to salary cuts, or outright retrenchment. All of this at a time when schools were closed to curb the spread of the virus and safeguard the most vulnerable members of our community, and parents were left with the added responsibility of home-schooling their children for more than a term.

In short – if you haven’t made provisions for your child’s academic future yet, now is the time to do so. Here are a few things you should consider when you address your family’s budgetary planning in this regard:

Public schooling for a single child can cost up to R1.6 million

According to projections by Business Tech, parents who sent their children to Grade R in 2020 can get ready to pay up to R1.6 million per child for a full 12 years of basic education in a public school, followed by a three-year tertiary degree. If you choose to go the private school route, this figure goes up to a whopping R3.7 million per child.
This estimation was based on a conservative inflation rate of 9% and does not include the expenses of anything other than outright tuition fees. In short, you’d still have to budget for school uniforms, stationery, extramural activities, sports- and club fees, as well as any extra tuition your child may require.

Who would cover schooling if something should happen to you?

Most children have godparents who are mandated to take care of them if something should happen to their parents, but in many cases the specifics of this care and the financial implications thereof are not discussed in detail. Who would foot the bill if something should happen to you, leaving your child the responsibility of their godparents?

An education protector policy from a registered financial services provider is a good way to lay this concern to rest. The policy is tied to a parent’s personal life insurance policy and pays out in the event that they should meet an untimely death or become incapable of performing their job. Ask your financial advisor for more information in this regard.

Savings don’t have to be huge monthly amounts

According to recent findings by Old Mutual, up to 55% of parents in South Africa’s urban sectors are not actively saving towards their children’s education. You can start saving for your child’s academic future now by putting away as little as R300 per month with the assistance of a financial advisor who understands your specific needs and circumstances. It may taking some getting used to at the outset, but you will be happy that you made the budgetary sacrifice when you’re in a solid financial position to provide for your offspring later down the line.

There you have it – a few important things to consider when you plan for your child’s academic future in South Africa. If you are currently feeling overwhelmed by education and other lifestyle expenses, and can’t seem to get ahead of your monthly debt repayments, we invite you to get in touch with a Libertine Consultants representative. We’re here to help you take back control of your finances with our range of debt services and credit services.

What to do after the payment holidays are over?

COVID-19 lockdown measures may have been relaxed to a certain extent as the country ease into Level 3, but for many consumers that won't mean the strain on their finances will suddenly become any less disruptive. Most of the 'payment holidays' that were announced by SA banks in March will cease at the end of June, but the knock-on effects of an economy in hibernation have only really started to emerge.

Many employees have had to take salary cuts (often 50% or more) as businesses try to steady the boat, and this is not likely to be reversed any time soon. Plus, once the banks revert to business as usual, consumers who had three months of payment relief will be open to legal action if they can't afford their established debt repayments.

As such, it’s important to take a good, hard look at your finances in the month ahead. Here are a few important guidelines we’re sharing with our clients at this time:

Manage household expenses as tightly as possible

If you don’t currently have a household budget that guides your monthly purchases, now is the time to draw one up. Take a good, hard look at where your money goes and see where you can trim the fat if possible. For instance, when you take care to track your payments, you could very well notice that your prepaid electricity bill is quite high, or that your water bill differs vastly from one month to the next.

Having this information in front of you makes it simpler to know where you need to focus your saving efforts. Remember, small changes can make a big difference in the long run. Switching off the lights when you leave a room, not using the dryer needlessly when the sun is out, and reusing your bath water to wash your clothing (completely possible with a sturdy bucket and some elbow grease) doesn’t take a lot of effort, but can have a big impact on your electricity- and water usage from one month to the next.

When it comes to groceries and food expenses, planning your meals makes a world of difference. Sit down with your family or housemates and decide on a weekly or two-weekly meal plan that works for everyone. Do your grocery shopping accordingly and keep an eye out for good deals on non-perishable pantry staples like oats, cooking oil, flour, tinned goods, long-life milk, pasta, peanut butter, etc. It takes some effort, but when you shop consciously, rather than just idly filling a trolley when you visit the store, the saving opportunities are endless.

Take a look at your contractual payments

If you are struggling to keep up with payments of daycare, gym memberships or any other monthly expenses that go toward something you don’t get the benefit of during lockdown, it’s time to take a look at the contract. Many businesses will claim that you are contractually bound to keep up with these payments even if they are unable to provide the service you are paying for, but COVID-19 is an unforeseeable occurrence that is not addressed in most existing contracts.

See if you can work out a payment plan with the provider in question to provide some budget relief, or seek professional advice if you are unsure whether you can exit a contract without opening up yourself to legal action down the line.

Don't put yourself at risk by cutting important payments

Expenses like medical aid, gap cover, retirement annuities, disability cover, and car- and home insurance really add up, and it can be tempting to opt out of these ‘in case of’ payments when times get tough. However, it’s important to realise that you can put yourself, and your family, at risk if you do. Put these in your ‘last resort’ column when you consider your budget, and try to make the payments on these for as long as you possibly can.

Ask for help when you need it

Don’t be too proud to ask for help. If you don’t have a go-to financial advisor who helps you to make sense of your finances when times get tough, it may be worth your while to consult a debt advisor. Just because you’re getting advice about debt counselling, it does not mean that you will get blacklisted or tarnish your credit record for all time. South Africa’s National Credit Act (NCA) is one of the most progressive in the world, and it was put in place to safeguard consumers, so put up your hand and ask for help when you need it.

Following these guidelines as you prepare for the end of the COVID-19 payment holidays will make it somewhat easier to absorb the financial impact. Feel free to reach out to the Libertine Consultants team if you would like some more expert insight on the matter. We’re here to help you regain control of your finances and live a life free of the stress of unmanageable debt.

SA COVID-19 Lockdown money matters

The unprecedented spread of COVID-19 has had a wide-reaching impact on individuals, businesses and communities in South Africa. The drastic but necessary measures taken by the government to prevent the spread of COVID-19 has had a profound impact on the financial position of most South Africans. To this end, most major banks are offering a measure of payment relief to their customers.

Here follows a summary of the responses of major SA banks up to date:

ABSA

ABSA has introduced an extensive individual and business customer Payment Relief programme for those impacted by the lockdown. This comprehensive solution applies to their retail and business credit products, including home loans, vehicle finance, personal loans and credit cards as well as commercial asset finance and mortgage-backed business loans. These solutions also cut across the business bank, private bank, wealth and retail customers. Products not listed may be considered on a case-by-case basis.

The ABSA Payment Relief programme will give customers the opportunity to either continue paying if they are in a position to, or to defer payments for a period of three months. Customers will not be charged administration fees for the payment relief. This measure is applicable to customers with up-to-date accounts who will have the opportunity to opt-in for payment relief aimed at assisting with cash flow needs during this time. Credit agreements will be adjusted, by revising the loan period and capitalising interest during the relief period.

SA Home Loans

SA Home Loans has committed to considering each application for payment relief on a case-by-case basis. Individuals who apply will have to provide proof of altered income when submitting an application to loanscontrol@sahomeloans.co.za via email.

Standard Bank

Standard Bank has announced a three-month payment holiday for small businesses. General Standard Bank clients who earn less than R7500 per month and whose accounts are in good standing can also apply for payment relief between the 1st of April - 30 June 2020.

First National Bank (FNB)

FNB has also acknowledged the financial pressure their clients will experience during the lockdown phase. They are offering clients who are up to date with their payments the option of applying for payment relief for a period of three months without any associated fees if they can provide proof that they have been placed on unpaid leave, short time or have been retrenched as a result of the COVID-19 shutdown. Assistance will be provided for credit insurance claims where possible as well. FNB Connect clients will also receive 1GB data for use in April 2020. However, interest and fees will continue to accumulate on outstanding balances.

Feeling uncertain about your ability to pay your bills?

Keep an eye on the blog and our social pages for more breaking news on money matters that pertain to the COVID-19 shutdown the far-reaching effects of the virus in general. If you are concerned that you may not be able to make your debt repayments during the lock-down phase due to the impact the economic standstill will have on your livelihood, please feel free to get in touch with a Libertine Consultants representative.

We will continue to work remotely by means of online consultation and a dedicated 24/7 WhatsApp line. Payments can be done via EFT, so you can address and consolidate your debt with our help from your home without breaking any lock-down rules. Reach out if you’re feeling overwhelmed by your debt burden – we are here to help.

The South African COVID-19 lockdown

President Cyril Ramaphosa addressed the nation via live broadcast from the Union Buildings in Tshwane last night, stating that the country will go in full lock-down mode from midnight on Thursday 26 March 2020, until midnight on Thursday 16 April 2020. This 21-day lockdown has been put in place to prevent the rapid spread of the COVID-19 virus, which could cripple our healthcare system if person-to-person transmissions continues at the current rate.

In short – things just got very real. There are many South Africans who will feel the financial repercussions of a lockdown of this scale for months, if not years, to come. Naturally, this is something the government understands all too well. To this end, certain measures have been put in place to ensure that the fall-out of this bold, yet completely necessary, decision are contained and minimised as far as possible.

Here are a few important things to know about money matters as we head into lockdown mode this coming Thursday:

Banks and essential payment services will remain open

The banking system will remain open, the JSE will continue to function, the national payment system will continue to operate, and the Reserve Bank and the commercial banks will ensure that bank notes and coins remain available. Banks, as well as essential financial and payment services will remain open.

Government has set up a fund to combat the disease and address the social effects thereof

Following consultation with social partners, government has set up a Solidarity Fund, which South African businesses, organisations and individuals, and members of the international community, can contribute to. The Fund will focus efforts to combat the spread of the virus, help us to track the spread, care for those who are ill and support those whose lives are disrupted. Government is providing seed capital of R150 million and the private sector has already pledged to support this fund with financial contributions in the coming period.

Price hikes on basic good will not be allowed

Regulations have been put in place to prohibit unjustified price hikes, to ensure shops maintain adequate stocks of basic goods and to prevent people from ‘panic buying’. It is important for all South Africans to understand that the supply of goods remains continuous and supply chains remain intact.

The informal sector will be supported

A safety net is being developed to support persons in the informal sector, where most businesses will suffer as a result of this shutdown. More details will be announced as soon as we have completed the work of assistance measures that will be put in place.

Old age and disability grants will be paid out earlier

To alleviate congestion at payment points, old age pensions and disability grants will be available for collection from 30 and 31 March 2020, while other categories of grants will be available for collection from 01 April 2020. All channels for access will remain open, including ATMs, retail point of sale devices, Post Offices and cash pay points.

Banks are working on providing temporary debt relief

Commercial banks have been exempted from provisions of the Competition Act to enable them to develop common approaches to debt relief and other necessary measures.

Tax subsidies will be put in place for private sector employees earning below R6,500

Using the tax system, government will provide a tax subsidy of up to R500 per month for the next four months for those private sector employees earning below R6,500 under the Employment Tax Incentive. This will help over 4 million workers. For more information, you can access the president’s full speech here.

Feeling worried about your debt? Get in touch!

If you are concerned that you may not be able to make your debt repayments during the lock-down phase due to the impact the economic standstill will have on your livelihood, please feel free to get in touch with a Libertine Consultants representative. We will continue to work remotely by means of online consultation and a dedicated 24/7 WhatsApp line. Payments can be done via EFT, so you can address and consolidate your debt with our help from your home without breaking any lock-down rules. We will weather this storm together. Let’s band together and flatten the curve so we can ensure a brighter future for our entire nation. Thank you for your service, Mr Ramaphosa. We know that this decision was not an easy one to make, and we salute your grace under pressure. Stronger together, Mzansi!

How to manage your money during COVID?

Hi there – how are you doing? Are you okay? It’s a pretty strange time right now and at Libertine Consultants we understand that most people are under a lot of stress.

The impact of the COVID-19 pandemic that is sweeping the globe seemed a far-off threat until it reached our shores and became a stark reality in recent weeks. The moment when President Ramaphosa announced the state of emergency on live air on Sunday 22 March will definitely be etched in our minds as a nation forever. As we prepare to potentially face even more stringent measures to control the spread of the disease, it can seem impossible not to panic. However, at times like these it can be helpful to focus on the things you can control – like your finances.

Here are a few ways to manage your money to avoid extra financial stress during the COVID-19 pandemic:

Take advantage of payment holidays

Certain banks, such as Standard Bank, have announced that they are giving small businesses access to ‘payment holidays’, which means they won’t have to make any repayments on existing loans for a certain amount of time. If you operate a small business that is suffering due to the effects of increased self-isolation, get in touch with your bank to find out how they can assist you in this regard.

Address your debt sooner rather than later

If you are currently just making ends meet and just covering your debt repayments, it may be worth your while to get in touch with a Libertine Consultants representative. We provide remote consultations via the phone and will be able to provide advice on restructuring your debt if you are concerned that you may not be able to make all your payments if your income stream should shrink somewhat in coming months.

Freeze any expenses you are able to

If you currently have a mutual bond or a personal retirement annuity of which the instalments are deducted from your account via a debit order, get in touch with your broker to see if there is a way to halt these payments for a while, until we have a better understanding of what lies ahead of us. These are extraordinary times, and it calls for extraordinary measures, so reach out to your financial service providers to see if they are able to help you to ease the burden.

When you spend, spend wisely

If you are self-isolating at home, it may mean that you have more time on your hands than you would normally have. At times like these, it can be tempting to shop around online and buckle under the pressure of clever advertising to buy things you don’t really need. Instead, curb your day-to-day spending as much as you can – keep your funds available for basic essentials like food, fuel, electricity and data if you need the internet to work from home.

There you have it – a few helpful ways in which you can manage your money to avoid undue financial stress as our government works to address the effects of the novel Corona virus. Stay safe, self-isolate as far as possible and take care of your health. Mzansi, we are stronger together.

How to clear your credit record in South Africa in 2020

If addressing your credit record is on your must-do list for 2020, you are not alone. Economic pressures are more intense than ever before, as South Africa's household debt reached 151.8 USD billion in September in 2019, compared with the reported number of 153.7 USD billion in the previous quarter. To put this into perspective – this number tell us that if all the household debt held by South Africans were to be split equally among all of our country’s citizens, each of us would owe the bank at least R40 000.

In short, it’s tough times out there, and it’s more important than ever to have a good credit report if you wish to secure a line of credit for big purchases like a house, a car, tuition, etc. However, addressing your credit profile can be a very daunting prospect when you don’t understand how it’s compiled, where to find it, or what to do when you find that your credit record is not as good as you had hoped.

Fortunately, there are a few steps you can take to get the ball rolling. Once you tick the following boxes, the process of clearing your credit record will become a lot more manageable:

Check your credit score.

You are entitled to one free credit profile check per year from a credit bureau like TransUnion.

Get an expert opinion.

If you don’t understand the information you receive once you get the report, don’t feel defeated. Companies like Libertine Consultants offer credit analyses services that explains the info on these reports.

Take steps to address any wrong information.

If some of the information on your credit profile is wrong or outdated, take steps to address it. Libertine Consultants offer credit clearance services that clean the slate and set the record straight.

Adjust your spending and repayment behaviour.

If you’d like to improve your credit profile in the long run, it may be time to address your financial behaviour by maintaining moderate use of credit such as store accounts, loans, etc. and paying it off in a dependable fashion. If you need a more immediate solution that required focussed debt management, we recommend that you consider debt review as a more permanent solution.

Compare your credit score.

In South Africa, credit scores can range from 330 to 850, with higher scores identifying very responsible borrowers and lower scores suggesting less responsible borrowers.

These guidelines should help you to improve your South African credit rating. For more information on the topic or to learn more about debt management and how it can help you to manage mounting debt repayments, don’t hesitate to get in touch with a Libertine Consultants representative. We’re here to help you live a more financially prosperous life in 2020 and beyond.

What does it take to have a clear credit record?

Having a good credit record is a lot like having a golden ticket to visit Willy Wonka's chocolate factory - the world is your oyster. When your credit history shows potential creditors that you know how to manage your finances, it's far easier to secure loans for big, necessary expenses like buying a house or paying for tuition.

At Libertine Consultants we understand that maintaining an optimal credit score is often easier said than done – there are many financial pressures that play a role in our everyday lives. Fortunately, there are ways to improve your credit rating if it’s currently not quite ideal. Here are a few expert tips from our team of passionate debt counsellors:

4 THINGS YOU CAN DO TO IMPROVE YOUR CREDIT SCORE IN SOUTH AFRICA

Know where you’re starting from

To get to grips with your credit rating, you first have to know what it is. As a South African resident, you are to one free credit report per year after which additional reports can be attained at a small fee. A credit report is the organised version of your credit information supplied to potential lenders by a credit bureau. This can be requested from any credit bureau, including

TransUnion Credit Bureau (based in America) Experian Credit Bureau (based in Europe) Compuscan Credit Bureau (based in SA) XDS Credit Bureau (based in SA)

TOP TIP: Not sure how to read your credit report, or unsure what some of it means? Take advantage of our CREDIT SERVICES. A credit analysis will give you a detailed breakdown of each account, its status, how it affects your credit profile and what can be done to improve it. This service is available at a nominal fee or R50.00 and includes in-depth classification of the negative information on your profile.

Close any accounts you’re not using

If you decide to cut down on your monthly expenses by no longer using certain lines of credit (e.g. clothing accounts), close it down. This will ensure that you’re not tempted to spend, and it will safeguard your personal information as well.

Cultivate a stable lifestyle

Credit providers tend to take a look at your lifestyle to determine whether you’re a safe bet. You’re more likely to be seen as a safe investment if you’ve been in the same job and lived in the same area for a while.

Pay off more than you need to

If you’re paying off debts (e.g. a credit card, home loan, etc.) try to pay a little more than you need to every month. This will show the bank that you are serious about managing your finances responsibly and will definitely count in your favour when it comes to your credit record.

These guidelines should help you to improve your South African credit rating. For more information on the topic or to learn more about debt management and how it can help you to manage mounting debt repayments, don’t hesitate to get in touch with a Libertine Consultants representative. We’re here to help you live a more financially prosperous life in 2020 and beyond.

How to start saving for your child’s education in 2020

A bright new decade is on the horizon, and as it dawns there are many folks out there who are getting ready to welcome a new member to the family, or preparing to send their children off to school. It’s such an exciting (yet daunting) part of the journey of being the parent – the big step you step take alongside your child when they leave your home to receive an education and make their way into the world.

It also happens to be quite expensive. According to recent projections by Liberty Group Limited, it can cost as much as R2,023,000 for one South African child to receive private schooling, and R701 000 for public schooling. This cost excludes extra expenses such uniforms, textbooks, stationery, transport, extramural activities, and accommodation. That is a lot of money in anyone’s book.

So, how do you go about saving up for this expense, and further tertiary education if your child’s future plans require university or college studies? There are various options available to the South African consumer. These include:

Saving account at your bank: A standalone 30-day savings account at your existing bank is a good, convenient place to start. However, the interest you’ll get will not be inflation-related and there are better ways to let your money work for you.

Unit trusts: Unit trusts offer many benefits if you require flexibility and early access to your money. It’s a little more involved to set up, but definitely worth it in the long run.

Investment policies: The benefit of an education policy is that you have a more structured savings plan, but you’ll have limited access to the funds during the first half of the term. It also has the added advantages of value in the full term, access to leading asset managers, benefits for your child on your death or disability and access to funds that offer guarantees on your savings.

As you can tell, there are various pros and cons associated with each of these savings options. In the end, it all depends on your savings goals and education plan for your individual child or children. If you’re struggling to make sense of all your options, it might be a good idea to discuss your options with a financial advisor – most banks will make one available to you upon request.

These you have it – some helpful information to get you on the right track to start saving for your child’s education in 2020. 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.

Budget-friendly holiday meal ideas for summer 2020

The holidays are here and it’s time to celebrate the festive season with family and friends. At Libertine Consultants, we are all for that Christmas spirit, but we’ve also had to assist many overindebted consumers who spent too liberally over the Big Days, and later found that they had trouble making ends meet for the rest of the year.

Whole chicken on the braai

If you want to put something on the braai, opt for a whole chicken. Whole chickens are much more affordable than chicken pieces and after the legs, wings and breasts have been eaten, there is still a lot that can be done with it.

Scrape the leftover bits of meat off the carcass, mix it with a little mayo and chopped tomato, and you’ve got a lovely sandwich filler or salad topping for a second meal. Then take the carcass and boil it down with some vegetable peals at low heat, strain it through a cloth and freeze the leftover juices in ice cube trays to be used for soup stock later.

Fresh fruit & veg in season

Shop with the seasons to get the best deals on fresh fruit and vegetables. Summer in South Africa is a great time to indulge in plums, peaches, apricots, strawberries, watermelon, and litchis. Not to mention corn on the cob, baby marrows and beetroot. Chop it up in salads, put it on a kebab stick for a hands-free approach, or pulp it to make ice lollies – the options are endless!

Potlucks & bring-and-braais

One of the most beautiful traditions we have in South Africa is the potluck and bring-and-braai. If you want to invite people over, but don’t necessarily have the budget to feed a whole horde, simply ask them to bring along whatever they have in the fridge – salad stuff, the fixings for braaibroodjies, a tin of tuna or two, some left-over sausage. See what you get and put it together to make a happy-go-lucky meal on the fly. In the end it’s about the togetherness after all!

These are just a few of the budget-friendly meals you can whip up over the holidays. 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.

Unexpected expenses to budget for over the festive season

Silly season is upon us and the holidays are so close we can almost taste them! Are you ready to kick back and relax with the rest of South Africa? At Libertine Consultants, we realise that after a long year of hard work, a period of rest and recuperation is just what the doctor ordered. However, we’ve also seen how unexpected vacation expenses can put a lot of strain on our clients’ budget come January.

Here are a few ‘unexpected’ expenses that tend to crop up every year (but we all somehow neglect to budget for):

Extra childcare

If you have children in your home, they must be about ready to lose their marbles; school’s almost out! While this is all good and well for youngsters under the age of 18, it can become a major headache for parents who still have to work deep into December. Remember to bear in mind that you might have to pay a sitter or arrange enrolment in a holiday programme to keep your kids safely occupied while you continue with work over the school holidays.

Way more food than usual

South Africans are very enthusiastic hosts and we all tend to welcome lots of friends and family into our homes over the holidays. Naturally, they often stay for lunch or dinner (or both!). This is why it’s prudent to set money aside for extra groceries over the festive season to ensure that your household budget does not run dry in the second week of merriment.

Spur-of-the-moment fuel

If you own a car, the holidays come with its own set of temptations. After all, when you’re on leave, sitting at home, it can be very tempting to jump in the car for a drive or two, or to make your way to the next town to visit some relatives. All this driving adds up in the long run and you may very well spend twice as much on fuel as you would ordinarily do.

Oops-I-forgot gifts

Once the tinsel comes out, there will be little gift-giving moments that creep up on you unnoticed. Your kid’s Christmas recital for instance – it’s always nice to present their teacher with a small token of your appreciation. It’s also the time of year when homemakers give their domestic helpers and garden personnel a bonus to thank them for a hard year’s work, so be sure to factor that in if your household employs assistants like these.

There you have it – a few ‘unexpected’ expenses to bear in mind when you plan ahead for the festive season. If you factor these into your budget for December, January should feel a lot less worrying come 2020.

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.

Can I cancel my debt review in South Africa in 2020?

At Libertine Consultants, we understand that debt review is not an easy process. Even though our clients realise that they need to make big changes in order to get their finances under control, it can still be tough to tighten a belt that was already pretty snug to begin with. As such, we often hear the question ‘Can I cancel by debt review?’.

Today we’ll take a look at how a recent South Gauteng High Court ruling has impacted on the laws that were already in place pursuant to the South African National Credit Act. We have found out more information about voluntary withdrawal from debt review

WHAT DOES THE SOUTH AFRICAN LAW SAY ABOUT CANCELLING DEBT REVIEW?

A case that recently went before the South Gauteng High Court, Hermanus Janse Van Vuuren v Neil Roets & Others (case number 37407/2018), required the court to answer the question of whether a consumer who has been declared over-indebted can have their debt review set aside.

After much deliberation, the bench decreed that there are three sets of circumstances in which a consumer can legally withdraw from debt review. These were described as follows:

HOW & WHEN YOU CAN EXIT DEBT REVIEW VOLUNTARILY

Upon application for debt review and before the debt counsellor makes a declaration of over indebtedness via a Form 17.2(b).

Once a declaration of over indebtedness has been made via Form 17.2(b), but no debt review court order has been processed yet, the consumer can still present additional facts to the court together with their debt counsellor's proposal to facilitate a rejection of the initial over-indebtedness proposal.

Once a debt review court order has been granted, the only way to exit debt review legally is for the consumer to repay all their short-term debt, excluding long-term debts

So, there you have it – the legal ways of withdrawing from debt review voluntarily. If you need any clarification on any of these terms, please get in touch with a Libertine Consultants representative.

However, while we have you, we do want to make a point of stating that doing what you need to do to complete the debt review process is always the best course of action. Once you get to the point where all repayments of the debt that was outlined in your debt review order has been achieved, you will be issued with a debt clearance certificate.

This, in combination with a healthy credit score, will pave the way for a more prosperous future and allow you to enter into new credit agreements if you need to do so in future. Besides – there is a certain kind of pride and joy associated with finishing something that you started. It’s a confidence booster of note!

Now you know. Keep an eye on the blog in the coming weeks and months for more expert insight into managing your finances and living a rewarding, debt-free life. In the meantime, if you would like to learn more about our credit services and debt services, please feel free to get in touch with Libertine Consultants. We are here to assist you in paving the way to a more financially secure future.

5 Tips for shopping like a pro at the 2019 Black Friday sales

At Libertine Consultants, we spend a lot of time helping clients to get to grips with their day-to-day budgets and find a sustainable spending model that allows them to live within their means. As such, we are extremely opposed to the notion of needless ‘retail therapy’, AKA shopping for no particular reason.

However, when it comes to retail events like Black Friday (an annual occasion that falls on the last Friday of November each year, when stores offer consumers a variety of discounts), there are ways to make it work for you if you play it safe. Here are a few top tips to help you shop like a pro at the 2019 Black Friday sales:

NEVER go into debt to shop

No matter how great the deal may be, it’s never worth it to go into debt to buy something at a sale. Unscrupulous lending agencies will try to rope you in by offering ‘advances on your salary’, etc. Stand strong. Don’t fall for it. Live within your means and reap the rewards in the long run.

Choose how much you can spend (and stick to it!)

If you do have some liquidity in your household budget and would like to take advantage of a few good offers, be sure to decide how much you can spend before you hit the shops, or log on to do some online shopping. Find your spending limit and stick to it no matter what.

Use Black Friday to stock up on home essentials

Many supermarkets and stores offer lower prices on lifestyle essentials like soap, toilet paper, shampoo, toothpaste, canned goods, pasta, rice, etc. that can be stocked up for the rest of the year. Take some time to work through the advertising supplements before you get in the queue on Black Friday and use this opportunity to cut down on your grocery bills for the year ahead.

Research big ticket items (a LOT)

If you are tempted to invest in a big-ticket item like a fridge or a TV, make sure to do your homework before you buy. Check what the prices would be ordinarily, and how the special offer might affect any warranties, etc. When you make a big purchase like this, you want to know that you are not being duped into buying an inferior product, or that you won’t benefit from the same after-sales support you’d be getting at full price.

Don’t get swept up in the mayhem

Mob mentality is a real thing. When you’re in the midst of the buying frenzy that ensues in most stores on Black Friday, it can be easy to get swept up in a ‘buy buy buy!’ mentality. Stay clear-headed and make sound purchase decisions. If you feel that this is something that might trip you up, try shopping online, or rather don’t tempt yourself this year and spend your day sans shopping.

Following these guidelines will allow you to benefit from the special deals offered by South African retailers on Black Friday, without wreaking havoc with your finances. 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

5 Cost-effective ways to safeguard your health

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 one of the first things that normally fall by the wayside when our clients struggle to keep up with their bills is self-care. However, this is actually one of the most important things you should be focussing on when you are going through periods of immense personal strain.

Fortunately, there are simple, cost-effective ways to safeguard your health that does not have to include expensive supplements, gym contracts or trips to the doctor. Here are a few things you can do at home to take care of your health without breaking the bank:

Keep an eye out for lumps and bumps

October is breast cancer awareness month, so we thought we’d start out with one of the simplest things a woman can do to safeguard her health – regular breast exams. It’s a scary thing to think about, but when breast cancer is caught early on, it is completely curable with the right treatment. Not sure how to do a self-exam at home? Have a look here.

Make a point of moving more

Studies have found that as little as 30 minutes of exercise per day can aid in weight loss, reduce stress, boost your mood, improve your energy levels and memory, and so much more. You don’t need to run marathons or enter an Iron Man competition to reap these benefits – simply lacing up your takkies and taking the dog for a walk will do the trick. Just get moving and try to have some fun while you’re doing it!

Keep well hydrated

Drink plenty of water throughout the day. Health authorities commonly recommend 8 glasses of water per day for a full-grown adult, which adds up to about 2L, but if you can push that up to 3L it’s even better. Keep a water bottle handy and sip on it throughout the day.

Herbal teas are another good option – our local rooibos tea have an array of wonderful health benefits and it tastes great as an iced tea in summer as well. Steer clear of caffeinated and carbonated beverages; these actually draw moisture out of the body.

Eat plenty of fresh fruit and vegetables

One of the simplest ways to stay healthy is to eat plenty of fresh fruit and vegetables. Buy the produce that is in season to get the best prices and nutrient value. The recommended amount of fruit and veg used to 5 portions per day, but the World Health Organisation recently amended this recommendation to bring it up to 10. Here’s a good guide to portion sizes.

TOP TIP: Struggling to get all your fresh produce in? Whip up a smoothie for breakfast (you can cram at least a banana and two cups of spinach in there), and make a big batch of vegetable soup to keep in the fridge for snacks and meals throughout the week.

Practice meditation

Meditation holds countless health benefits, including the promotion of emotional health, the reduction of age-related memory loss, curbing addictions and controlling anxiety. Not sure where to start? Here’s a simple how-to guide.

Following these guidelines will allow you to safeguard your health without spending extra money. 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.

Do you know what your credit score is? Here's why you should!

Growing up, we all got report cards to take home to show our parents how well we were progressing with our schoolwork. As working professionals, annual performance assessments play pretty much the same role – it tells you how well you are performing your role at a company, and where you can improve. Did you know that as a South African consumer you have another report card that tells potential creditors how well you manage your finances?

It’s called a credit report. These reports are compiled by the credit bureaux that operate in South Africa and serves as a record of your previous credit management behaviour. Here are a few things you should be doing to ensure that your credit record is as clean as possible:

Check your credit score regularly

According to section 72 of the National Credit Act, you have the right to access this information free of charge every 12 months. If you request it more than once within a 12-month window, a charge of no more than R20 may be levied. Today there are four main credit bureaux that have been approved and registered with the National Credit Regulator (NCR) in South Africa, namely:

TransUnion Credit Bureau (based in America) Experian Credit Bureau (based in Europe) Compuscan Credit Bureau (based in SA) XDS Credit Bureau (based in SA)

Dispute any incorrect information immediately

Once you receive your credit report, take the time to go through it with a fine-tooth comb. If you find any incorrect information you need to take it up with the credit bureau immediately. Examples of incorrect information you may find include: An incorrect name, contact number of address. Information of accounts that belong to someone with a similar name. Accounts that were opened under your name but not by you (a case of identity theft). Accounts that have been closed by you, but still appear as open on the report. Payments that are noted as late, but were made on time. Accounts with incorrect limits or balances. A debt amount that is listed more than one time.

Keep a record of your communication

When you dispute information on your credit report it is important to keep a paper trail to show the steps that you’ve taken to correct the issue. If you sent a letter, do so via certified mail. Credit bureaux have to investigate every claim they receive, and they have to update you as they do so, normally within a month of receiving your dispute. If you take up the dispute with an institution like your bank, and they find that they have indeed made a mistake, it is their responsibility to contact the credit bureau to remove the bad mark on your record.

DID YOU KNOW? 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.

Now you know! Keep an eye on the blog in the coming weeks and months for more expert insight into managing your finances and living a rewarding, debt-free life. In the meantime, if you would like to learn more about our credit services and debt services, please feel free to get in touch with Libertine Consultants. We are here to assist you in paving the way to a more financially secure future.

Your guide to your rights as a consumer

The fourth article on our consumer rights series is ready for your perusal! Our first article dealt with your right to apply for credit, and your right not to be discriminated against when applying for credit. This was followed by a second article that took a look at your rights to be given reasons for credit being declined, as well as the provision of documents in an official language that you understand.

Our third and most recent article unpacked your right to be given documents related to the credit transaction, and the fact that these documents have to be presented in plain and understandable language. 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 confidential treatment and the right to access and challenge information held by a credit bureau.

The right to confidential treatment

When you apply for credit you are often required to share very personal information. This is why the National Credit Act makes a point of protecting consumer privacy. According to section 68 of the Act, any person or business that gathers sensitive personal information regarding your finances can only ever use that information for the purposes that you agreed to. There are exceptions to this rule that is stipulated in the Act, but these are few and far between. Also, the person or business that took your personal information may only ever release it if they are instructed to do so by you, or a court of law.

The right to access and challenge information held by a credit bureau

When you apply for credit, it may sometimes happen that you are turned down due to an issue with your credit report. Your credit report compiled the credit bureaux that operate in South Africa and serves as a record of your previous credit management behaviour. According to section 72 of the National Credit Act, you have the right to access this information free of charge every 12 months. If you request it more than once within a 12-month window, a charge of no more than R20 may be levied.

Additionally, if you challenge the accuracy of some of the information on your credit report, and the bureau is unable to provide you with proof of accuracy of the information, they have to remove it from your record immediately.

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.

There you have it – two more rights you have as a consumer in South Africa in 2019, explained in simple terms. Check back soon for Part V. 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 paving the way to a more financially secure future.