Many South Africans may be anticipating the long-term implications of the country’s sovereign credit rating downgrade to BB+ (junk status) by ratings agencies, Standard & Poor and Fitch, in April 2017. The biggest impact this is likely to have on the consumer is that interest rates will continue to increase, meaning increased repayments on debt1.
“This is a time where consumers need to consider tightening their financial belts by ensuring that they are not entering into any unnecessary debt commitments,” says Derek Wilson, head of online insurance and financial services comparison website, Hippo.co.za, “Some debts such as home loans or student loans are often necessary, but for others, one should consider saving up rather than creating more debt”.
Hippo.co.za found these tips on good debt and bad debt and how to save more instead of owing more:
“Hippo.co.za have been assisting consumers since 2007 in getting better deals on Car, Home, Life and Business Insurance and you are even able to compare Medical Aid, Funeral Cover and Personal Loans (for your good debts of course),” says Wilson, “We continuously look at ways of helping consumers when it comes to personal finance and have recently launched our new Debt Counselling service where clients are referred to an approved Debt Counsellor through our online platform. This is to assist over-indebted consumers with repaying their debt through an affordable repayment plan”.