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

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

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

Recommended

More from Personal Finance with Warren Ingram

edit - equity-market - image from JSE-dot-co-dot-za.jpg

Personal Finance Feature - Equity fund vs index investing

2 July 2020 8:43 PM

Personal financial adviser Warren Ingram says active fund managers in South Africa have had a terrible time.

Share this:
Read More arrow_forward

invest.JPG

Scared that you may lose your life savings?

25 June 2020 8:07 PM

Warren Ingram, wealth creator, answers listeners' questions about safe investing in anxious times.

Share this:
Read More arrow_forward

Contract

No guarantee that your nominated beneficiary will get your money when you die

18 June 2020 7:58 PM

Did you know that the Trustees of retirement funds don’t have to pay it out to your nominated beneficiary?

Share this:
Read More arrow_forward

covid-19 coronavirus economy 123rfbusiness 123rflifestyle 123rf recession

Personal Finance Feature: Timing the market

11 June 2020 7:52 PM

What is the concept of "market timing" and how can it help investors?

Share this:
Read More arrow_forward

Retirement couple relationship

How to plan for retirement during the Covid-19 crisis

28 May 2020 7:47 PM

The Covid-19 pandemic and the economic destruction in its wake has left some of us wondering if we'll ever be able to retire.

Share this:
Read More arrow_forward

Old house abandoned namibia 123rfbusiness 123rflifestyle 123rf

What will become of South Africa's property market and industry after lockdown?

30 April 2020 7:52 PM

Personal finance expert Warren Ingram shares his concerns and offers a few pointers.

Share this:
Read More arrow_forward

piggy-bank-coins-money-budget-savings-personal-finance-123rf

Earn up to 11.5% interest on one of the safest investments around

16 April 2020 7:33 PM

Personal finance guru Warren Ingram on why you should consider this risk-free investment, especially if you live off interest.

Share this:
Read More arrow_forward

Piggy bank mask covid-19 coronavirus 123rfbusiness 123rflifestyle 123rf

'If you still have a job, get rid of your debt as fast as you can'

2 April 2020 8:04 PM

Personal finance expert Warren Ingram has advice on how to survive – or even thrive – amidst the Covid-19 outbreak.

Share this:
Read More arrow_forward

piggy-bank-coins-money-budget-savings-personal-finance-123rf

Market crashes - what happens to investor money afterwards?

12 March 2020 8:43 PM

Warren Ingram, wealth planner, has sensible advice for investors in gloomy times.

Share this:
Read More arrow_forward

COVID-19 virus coronavirus outbreak blood sample test tube 123rfpolitics 123rf

How to invest and manage your money when the world gets 'flu'

5 March 2020 8:05 PM

Markets are in turmoil in the wake of the coronavirus. How can you ''quarantine" your funds in a safe space?

Share this:
Read More arrow_forward