Multiple retailers closures accelerate to average of 20 stores a day

Several forces are creating the “perfect financial storm” to lead many more South Africans towards cash flow shortages in 2016, Debtbusters CEO Ian Wason said.
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stevepb via Pixabay
Debtbusters has recorded a 113% increase in enquiries about debt counselling so far in December, compared to last year. Wason is predicting the situation is only going to get worse. He points out four key reasons why the debt stress of cash-strapped consumers will increase even more.

Increasing tax burden

Wason predicts there will be no income tax relief on the horizon for middle- and upper-income earning consumers in 2016. He believes any tax hikes will only make these consumers more financially vulnerable.

“Middle- and upper-income earners are some of the most financially constrained South Africans. They have houses, cars and ample monetary commitments, such as school fees and mobile contracts,” said Wason.

“These consumers have these possessions because they have borrowed money to make purchases and have already been impacted by two repo rate increases in 2015. Any tax increases will directly impact their level of disposable income and will only make it harder for them to service their financial commitments and absorb another repo rate increase.”

Interest rate increases

The recent weakening of the rand, tighter monetary and fiscal policy and the inflationary impact of possibly the worst drought in South Africa’s history will likely lead to additional hikes in the repo rate by the SA Reserve Bank at the start of 2016. This could be a tipping point for many consumers after their festive season spending, in Wason’s view.

In addition, consumers can expect their cash flow to be squeezed by other price increases in items such as food – due to the drought – electricity and water. “The weakening economy – and an increased risk of unemployment added to the mix – sets the scene for a potentially bleak start to 2016,” said Wason.

More difficult to get a loan

New interest rate caps introduced by the Department of Trade and Industry will make it even more difficult for borrowers to obtain loans in the future, according to Wason. While low-risk consumers will be paying less in interest and fees, lenders will be using more stringent risk models to evaluate customers’ creditworthiness.

“As soon as the new regulations regarding limitations on fees and interest rates come into effect in May 2016, lenders will be taking on more risk for less money and are, therefore, bound to decline riskier borrowers,” said Wason.

As lenders start scaling back on who they lend money to, even fewer people will qualify for loans, and consumers who are dependent on short-term loans for survival will find themselves in a “cash flow drought” with “nowhere left to turn”.

DebtBusters’ Debtometer report for the third quarter already shows significant changes in the South African lending landscape, with a decrease in banks’ share of overall debt. This confirms that banks have scaled back on lending, according to Wason.

Consumer debt scales tipping to the bad side

In Wason’s view, South African consumers are addicted to shorter-term expensive debt and do not seem to care about or understand the costs. “This addiction – driven by desperation for cash – has led to the increase in payday loans. Almost two million South Africans rely on payday loans every month, according to the latest Consumer Credit Market Report (CCMR),” said Wason.

What is even more concerning to him is that payday loans between R5,000 and R8,000 have increased by 557% this year. The CCMR also indicates that only 58% of unsecured accounts are up to date – the lowest on record.

The latest Debtbusters Debtometer report shows clients required 102% of their net income to service their debt before paying for any living expenses.

Controversy over Newcastle’s deal with Wonga

English Premier League side Newcastle United on Tuesday unveiled a sponsorship deal with loans company wonga.com, sparking criticism and concern because of the firm’s reputation for charging sky-high interest rates.
Wonga will sponsor the club’s shirts from the start of next season and will also invest £1.5m in the club’s academy and a social scheme helping to equip local youngsters with workplace skills.

Newcastle managing director Derek Llambias said in a statement: “We are building a club that can regularly compete for top honours at the highest level.

“Throughout our discussions Wonga’s desire to help us invest in our young playing talent, the local community and new fan initiatives really impressed us and stood them apart from other candidates.”

But local politicians and R3, a trade body for insolvency professionals, questioned the appropriateness of the choice as the north-east of England, of which Newcastle is the main city, has the highest rate of insolvency in Britain.

Wonga offers short-term business loans for an annual percentage rate of up to 360% while its “representative” annual rate for payday loans for struggling households is more than 4,000%.

Those rates have seen the opposition Labour Party speak out against the deal.

Local Labour lawmaker Ian Lavery told The Times that “if Wonga get this sponsorship I will not set foot in St James’ Park (which club owner Mike Ashley has rebranded the Sports Direct arena) until it is off the shirts.”

He dubbed the deal “an outrage.”

R3’s chairman Lee Manning noted that “Wonga has chosen to target a region that has comparatively high numbers of people experiencing financial difficulty. Our experience tells us that many of those seeking high-cost credit need professional advice for their financial problems, rather than accruing further debt.”

Payday Loans – Get no Hassle Fast Payday Loans to Answer Your Financial Crisis

If you find yourself in a financial crisis and are short of ready cash to pay for your monthly utility bills, car repairs, medical bills, your child’s school fees, credit card dues, and there is no other way out, in that case, submit an application for fast payday loans and divest yourself of any financial condition without any hassles and get the ready money right away. Of course, at present it is achievable through fast payday loans. In fact, there are a few aspects that make it more popular in USA such as, there is no credit check so even people with bad credit can apply confidently and get approved for such loans. You do not have to pledge any collateral, no documents to fax in and unnecessary formalities to run after, faster approval, cash transferred directly to your checking account within 24 hours of application so that you can attend your urgencies fast. These aspects are sufficient to make this type of finance popular and widespread and a motivation to apply for. Even people with bad credit are welcome to get the same services just like others get without any dithering. An individual with a previous bad credit record of debts, defaults, insolvency, delayed payments, missed payments, foreclosures, outstanding amounts, liquidation, etc. can as well avail such loans since you just have to prove your ability to pay back the said amount which in most cases is your paycheck. You can get approved by submitting an online loan application form. It is the most excellent and easy way to get the necessary cash without any uncertainties. Your loan amount is approved within minutes of application with no formalities to run after. Once approved lender directly transfers the loan amount to your checking account within 24-hours. Fast payday loans are easily accessible in the finance market. With a few necessary details the approval turns out to be quick and prompt without any hindrance. The amount that an individual can apply for varies from, $100 to $1500 with the settlement tenure of 7 to 21 days. There are a few eligibility criteria to be met, you should be US citizen, having a secured job with steady income of $1000 and above, and should have an active checking account. In addition, the settlement terms are flexible and easy. Lending rates are high given that there is no security involved which makes this kind of credit risky for the lenders on the other hand it is completely risk free for the borrower. Fast payday loans are unsecured loans; as a result, it needs no security or collateral to secure such loans. This is a short-term loan with a very small loan amount and has to be settled up in time to keep away from the late fees. On the other hand, there is the provision for extension of such loans. The amount can be used for several reasons home improvement, settling credit card dues, paying school/college fees of your child, vacation, car repairs, hospital bills, marriage ceremony, and so on. These loans are best option when you are in need of cash and your payday is still a few days away. Published at: https://www.isnare.com/?aid=476181&ca=Finances

Payday Loans – Online Fast Payday Loans Are Cheaper Than Various Fees Charged by Banks

Ever since the economy has grown multifaceted with time, people have had to depend increasingly on financial institutions for cash management. The trouble is that banks are not impartial or neutral moderators instead are business firms together with an inherent concern in how people deal with cash. For that reason, while banks recommend individuals must avoid payday loans, you should, ignore it. In any case, how do online payday loans be blamed for what happens if you overdraw on a bank account or your credit card both issued by so called honest banks. Online fast payday loans are issued by online payday loan lenders to people for a very short tenure of 7 to 21 days. The usual charges for a short-term payday loan are $10 to $30 per $100 over the loan term. Usually, these loans are frequently obtained to deal with an impetuous, urgent cost that arises during the middle of the month when your paycheck is still days away when the loan is repaid promptly, the charges are flat and predetermined. Consider this, if an individual writes a check and there isn’t as much as necessary cash in the account to clear it, the bank will enforce a late fee which usually is around $30 to $40 in most cases. In practice, at this instant, taking out $250 from an online payday loans is nevertheless economical. In the similar fashion, several banks charge recurring fees for an overdraft that is not paid back in a set period of time often 5 days. The charges are again extremely high and you can expect to be end up paying more than $80 to $90 in bank overdraft charges. The above amount is enough to cover $500 payday loan, which is normally the maximum limit in the majority of states. Now consider this if a credit card is used to pay the bill and is accepted, however the card exceeds the limit and is overdrawn, the fee situation can as well be quite bad. Usually, a credit card late fee is again around $30 to $40 dollars. The outcome of an over limit fee on a credit card can be a great deal more as crossing the card limit can raise the interest rate for the entire amount overdue. If this amount is not settled, an additional $30 to $40 fee can be charged every month until it is settled, which can increase growingly to several hundred dollars in over limit charges alone. To be fair enough, online payday loans might look as if to be expensive, on the other hand can be of assistance to a individual to get around from the horrendous of sickeningly expensive inadequate balance amount, credit cards late charges or check bouncing charges together with the additional over limit charges from the so called honest banks and credit card companies. As we have seen in this article online payday loans are not as bad as they are publicized and given a chance even up market and so called honest banks try to fleece the customers with their very high late fees, over limit fees, check bouncing fees in case of a default from a customer. So, if you use payday loan appropriately you won’t find a payday loan in anyway expensive. Published at: https://www.isnare.com/?aid=502005&ca=Finances

The Easy Payday Loan – Why Payday Loans Are Easier To Get Than Credit Cards Or Personal Loans

Payday loans are easier to get than credit cards or personal loans since there is no credit check involved. And because payday loans are meant for a short period, usually 30 days or less, payday companies don’t require an extensive background check. No Credit Checks Credit checks take time – several days in fact. And when you borrow large amounts, like with a car or home loan, it makes sense for a lender to make sure you aren’t too high a credit risk. Cash advance companies deal with much smaller loan amounts, between $50 and $1500, so they can afford to lend to anyone with a regular source of income. Not only do you not have to worry about your credit score with a payday loan, but you also reduce time spent processing your loan application. Quicker Turnaround Time Getting a cash advance is also quicker than applying for other forms of credit. By submitting your contact and checking account information, you can be approved within minutes. After a quick verification of your information, your lender can wire your cash into your checking account within a few hours. A credit card or personal loan can take weeks to process as lenders check your financial background. Flexible Hours By using an online payday loan company, you can apply anytime. Most applications are processed over the internet, so you can get a response even in the middle of the night. And with most lenders, you can contact a representative outside of typical business hours. Easy Comparisons Besides the ease of the process, you also can compare lenders much easier than with credit card companies or banks. Most cash advance companies will post their fees or APR on their website in the FAQ section. By checking out several lenders, you can be sure you are getting the lowest fees. No Credit Affect Payday loans stay off your credit record as long as you pay them on time. With credit cards or personal loans, using credit or having several open accounts will lower your credit score. Payday loans don’t have that affect, and they make sense for short-term financial emergencies. Published at: https://www.isnare.com/?aid=24628&ca=Finances

With the downturn in the economy, it is no surprise that it is very tough to deal with unexpected financial urgencies these days. At times, you have an urgent situation and you want some ready money at once. Whether you want to have a loan of $100 or $1500, you can get help online with a fast payday loans. Avail yourself of this fast cash loans in case you have a pending bill to pay or you want repair your car, shopping for a sports equipment for your child, paying off your credit card bills or monthly mortgage payments or for whatever reason you want it for. These are short term payday loans accessible to you, and are offered for 7 to 21 days or until your next paycheck is credited to your bank. You want the cash and payday loans provide you with the cash, at rates that are as good as to other lending companies. Payday loans realize, with job hours being cut and job losses at record highs that it is difficult and difficult to deal with short term unexpected urgencies. For this reason, we are here to lend a hand with expedient hours. Get your hands on once your work is over and if you want cash for that utility or medical bill, these are available for you. Despite the fact that your credit record is substandard, you can still get this fast cash help. Your employment and your salary is enough to act as your credit. If you have a bad credit problem like, delayed payments, low credit score, bankruptcy, insolvency, defaults, it is not an issue. Payday lenders are familiar with that every person has gown through a circumstances where they just aren’t able to pay their bills and something unexpected occurred. Payday lenders are aware of that, and for this reason, if you need short term payday loans, you can avail yourself and take care of all your needs. Usually, in particular, towards the last week of months, there are just too many days and not as much as necessary salary left. For example, it happens, at times something unexpected crop up like, a medical urgency, or you have to repair a car so that you can go to your work. This is not a rare incidence. No matter what your difficulty is, you just have to visit online website, fill in online loan application form, a few formalities, provide a repayment check, in advance and get your cash transferred to your account within just a few hours. Visit, try for yourself and see what it can do for you in hour of your need. To cut a long story short, financial crisis do take place. Unexpected things do occur, and if you would like one of these short term fast payday loans, online payday loan lending companies are always there to help you out of you financial crisis and get you the money you want and help you bounce back at once.

Payday loans are small short term loans approved by payday loan lenders to respond to individual’s urgent and momentary cash scarcity and are typically for a short period only, from one payday to another. These are often used when there are unexpected expenditures that cannot wait or cannot be postponed until the next payday. The need may crop up from unexpected expenses like, car or appliance repairs, urgent home repairs, children’s school fees, medical bills, utility and credit card bills and so on. Since the individual’s need is urgent and short term, it is crucial that the borrower should have access to cash very fast at times within 24 hours, any later and it would be of no use. Knowing this, payday loan lenders normally get rid of the typical lengthy formalities and extensive checking of a borrower’s credit record related with conventional loan process. There are a few requirements like, the person in need should be 18 years or more US citizen, employed, earning a stable income of $1000 or more and having an active checking account. You just need to apply with a simple online form stating your name, address, contact details and checking account details. Besides, the amount being too small, often ranging from $100 to $1500, the lender does not seek any collateral from the borrower. However, even if the amount is small, it is nevertheless a financial commitment; therefore the borrower should go through the deal completely ahead of signing it. The repayment term for payday loans is often between 7 to 21 days or till your next payday, so remember to make arrangements for that well in advance to avoid late fees. The conventional means of getting a cash loan is to visit the bank physically, discuss the terms and conditions, and if satisfying, submit a physical application for loan and abide by the lender’s conditions. To get rid of the lengthy procedure, the majority of lenders at present follow online loan application method, which is suitable, in particular for people who do not have time for travelling and waiting in line at a bank. As soon as you submit the application, the lender receives and processes the application. Depending upon the borrower’s qualification the lender approves or disapproves the loan, and if approved, the borrower is informed. The loan amount is deposited directly into the borrower’s account within 24 hours. As it comes to repayment, the lender needs a post dated check, mostly payable on the borrower’s upcoming payday. A payday loan will have to be paid in full, along with the interests and other lending fees. Despite the fact that it is very easy to get payday loans, a borrower still has to adhere to the previously mentioned few conditions. Lack of any one of these preconditions will, almost certainly be a reason for disapproval of the loan application, or in any case, holdup the processing and approval of the loan amount and the borrower may need to provide some more documents. Finally search the internet for a dependable payday lender to get a best payday deal. Published at: https://www.isnare.com/?aid=519609&ca=Finances

Payday Loans – Short Term Fast Payday Loans to Deal With Unexpected Financial Urgencies

With the downturn in the economy, it is no surprise that it is very tough to deal with unexpected financial urgencies these days. At times, you have an urgent situation and you want some ready money at once. Whether you want to have a loan of $100 or $1500, you can get help online with a fast payday loans. Avail yourself of this fast cash loans in case you have a pending bill to pay or you want repair your car, shopping for a sports equipment for your child, paying off your credit card bills or monthly mortgage payments or for whatever reason you want it for. These are short term payday loans accessible to you, and are offered for 7 to 21 days or until your next paycheck is credited to your bank. You want the cash and payday loans provide you with the cash, at rates that are as good as to other lending companies. Payday loans realize, with job hours being cut and job losses at record highs that it is difficult and difficult to deal with short term unexpected urgencies. For this reason, we are here to lend a hand with expedient hours. Get your hands on once your work is over and if you want cash for that utility or medical bill, these are available for you. Despite the fact that your credit record is substandard, you can still get this fast cash help. Your employment and your salary is enough to act as your credit. If you have a bad credit problem like, delayed payments, low credit score, bankruptcy, insolvency, defaults, it is not an issue. Payday lenders are familiar with that every person has gown through a circumstances where they just aren’t able to pay their bills and something unexpected occurred. Payday lenders are aware of that, and for this reason, if you need short term payday loans, you can avail yourself and take care of all your needs. Usually, in particular, towards the last week of months, there are just too many days and not as much as necessary salary left. For example, it happens, at times something unexpected crop up like, a medical urgency, or you have to repair a car so that you can go to your work. This is not a rare incidence. No matter what your difficulty is, you just have to visit online website, fill in online loan application form, a few formalities, provide a repayment check, in advance and get your cash transferred to your account within just a few hours. Visit, try for yourself and see what it can do for you in hour of your need. To cut a long story short, financial crisis do take place. Unexpected things do occur, and if you would like one of these short term fast payday loans, online payday loan lending companies are always there to help you out of you financial crisis and get you the money you want and help you bounce back at once. Published at: https://www.isnare.com/?aid=516679&ca=Finances