Streaming issues? Report here
money-show-thumbnailjpg money-show-thumbnailjpg
The Money Show with Bruce Whitfield
18:00 - 20:00
volume_up
volume_mute

Up Next: The Aubrey Masango Show
See full line-up
The Money Show with Bruce Whitfield
18:00 - 20:00
Home
arrow_forward
MyMoney Online

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

1 April 2020 6:29 PM

Personal Finance expert Maya Fischer-French on the pros/cons of dipping into credit insurance vs opting for a debt relief holiday.

Also, read:


Covid-19 and the nationwide lockdown to slow down its spread is obliterating the economy.

South African consumers – already highly indebted before the outbreak – will face severe hardships in the months and years to come.

Many will lose their jobs and their ability to service their loans.

There are two options you may want to consider at this time:

  • Access credit insurance

  • Debt relief holiday

Young couple reviews their expenses and debt. Image: 123rf.com

You may not realise it but – if you took out credit - it’s likely that you have credit insurance linked to the loan.

Credit insurance (aka a “credit life policy”) is a policy that pays your debt if you die or become disabled or, sometimes, if you get retrenched.

Every credit insurance policy is different; check your terms and conditions.

Most credit providers in South Africa has by now launched various Covid-19 “debt relief holidays” whereby repayment terms are extended and/or repayments are halted for a period.

The Money Show’s Bruce Whitfield asked personal finance journalist Maya Fischer-French about the pros and cons of dipping into credit insurance versus opting for a debt relief holiday.

Whitfield also spoke to FNB Life CEO Lee Bromfield.

If you take the payment holiday… it adds the capital amount you must pay off. It’s not a freebie… Credit life insurance… it’s been abused previously… people don’t even know they have it… Check if you have credit insurance… you most likely have it!

Maya Fischer-French, personal finance journalist

Only African Bank sent out a press release saying credit life insurance is available…

Maya Fischer-French, personal finance journalist

Credit life has been around for a bit. It’s embedded in our processes… we’re looking at contacting all our customers… how they can claim… We prefer our customers not to go into further debt…

Lee Bromfield, CEO - FNB Life

For more detail, listen to the interviews in the audio below.


1 April 2020 6:29 PM

More from MyMoney Online

absajpg

Absa wins international award for its response to Covid-19

5 August 2020 11:38 AM

The bank is one of only six in the world to be recognised in this way for outstanding performance during the global health crisis.

Share this:
Read More arrow_forward

black-family-house-for-sale-sold-property-household-investment-bond-rent-123rf

Digital mortgage originator Mortgage Me ensures you get the lowest interest rate

4 August 2020 12:59 PM

Everything is done electronically – you never have to leave your home, says Mortgage Me’s Andrea Tucker.

Share this:
Read More arrow_forward

TikTok 123rf 123rfbusiness 123rfworld 123rflifestyle

Microsoft wants to buy TikTok. Donald Trump gives it 45 days to negotiate

3 August 2020 7:23 PM

[EXPLAINED] The Money Show’s Bruce Whitfield interviews Craig Wilson, Editor at Stuff Magazine.

Share this:
Read More arrow_forward

Nigeria flag nigerian 123rf 123rfAfrica 123rfBusiness

Shoprite pulls the plug on Nigeria (pop 206m) – trouble for SA companies abroad?

3 August 2020 6:34 PM

Shoprite is exiting the oil-rich but spending-money-poor nation. Bruce Whitfield interviews Dianna Games (Africa At Work).

Share this:
Read More arrow_forward

Mine mineworker mining gold platinum coal 123rfbusiness 123rf

Resilient Amplats reports rise in earnings (Ebitda), solid balance sheet

27 July 2020 7:06 PM

The Money Show’s Bruce Whitfield interviews Natascha Viljoen, CEO at Amplats.

Share this:
Read More arrow_forward

Covid-19 insurance 123rf 123rfbusiness 123rflifestyle 123rfpersonalfinance

Santam to pay out R1 billion to policyholders in 'business interruption' relief

27 July 2020 6:29 PM

It still argues that the lockdown, not the pandemic, is responsible for its clients’ losses. Bruce Whitfield interviews its CEO.

Share this:
Read More arrow_forward

rands

SA Reserve Bank cuts repo rate to 3.5% - an all-time low

23 July 2020 3:39 PM

As widely expected, Sarb Governor Lesetja Kganyago announced a repo rate cut of 25 basis points on Thursday.

Share this:
Read More arrow_forward

Interest rates rate cut Sarb MPC 123rf 123rfbusiness

Expect another cut in interest rates – already at record-lows – later today

23 July 2020 1:13 PM

"Consumers who are in debt have received a huge bonanza," says Econometrix Chief Economist Dr Azar Jammine.

Share this:
Read More arrow_forward

Sars online tax return revenue service 123rfbusiness 123rfpersonalfinance

Ruling against Sars: 'Taxpayers have the courts on their side'

22 July 2020 3:17 PM

"This case shows rogue officials at Sars that the courts protect taxpayers," says tax attorney Jean-Louis Nel (Tax Consulting SA).

Share this:
Read More arrow_forward

Crisis just ahead dark clouds thunderstorm 123rf 123rfbusiness

'Property prices are falling. Cut rentals to hold on to existing tenants'

21 July 2020 9:31 AM

South Africa has become poorer, says property economist Erwin Rode. If you force a tenant out, who will you replace her with?

Share this:
Read More arrow_forward