Are you living within your means?

All too many South Africans are over-indebted and unable to properly manage their debt. According to the Credit Bureau Monitor, the number of consumers with impaired records increased by 95 000 to 9.34 million in the fourth quarter of 2012, from 9.25 million in the previous quarter. This indicates that there is an increase in the number of people that are struggling to keep up-to-date with their account repayments and effectively manage their debt. Are you struggling to make your account payments on time? One of the ways to assist you to do so is to draw up a budget and establish whether you are living within your means. On Fin 24, a consumer tells their own story of debt addiction – click here to read it.

The different forms of borrowing

Before making a financial commitment by purchasing on credit or taking out a loan, it is important that you understand the various forms of credit. Just Money has grouped the different forms of credit as follows:

• Short to mid-term borrowing

This form of credit includes personal loans, credit cards, bank overdrafts, vehicle finance, store cards and in-store finance.

• Long-term borrowing

This includes long-term personal loans and mortgages, as well as debt consolidation as it is usually a form of mortgage secured on a property. Equity release mortgages are growing in popularity.

• Short-term to mid-term personal loans

This refers to unsecured personal loans. An unsecured loan means that the lender does not have the security of assets that can me repossessed if repayments are not made.

To read more, click here.

Businesses encouraged to employ youth

According to Statistics SA, the number of unemployed people has increased by 100 000 to 4.6 million between the fourth quarter of 2012 and the first quarter of 2013. This increase has brought the percentage of unemployed South Africans to 25.2%. These figures include those between the ages of 15 and 64.

However, even more concerning is that an estimated 48.2% of those between the ages of 15 and 24 are unemployed, also according to Statistics SA.  In an attempt to stamp out unemployment, particularly amongst the youth, an initiative to employ young people has been launched. This initiative aims to reward businesses that employ young people in order to develop the skills and potential that this group has to offer the work force. To read more, click here.

Mobile banking: protect yourself against fraud

With mobile banking devices on the rise, fraudsters are taking advantage of the increase in opportunity to gain personal information and use it to access funds. There has recently been a spate of SIM swap crime. Fraudsters impersonate the customer and phone the network operator to report the SIM as lost or stolen. When the new SIM is activated with the customer’s number, messages that may contain personal information are sent to the scammer.

The head of cell phone banking and messaging at FNB, Dione Sankar, stated that, “Customers must be aware of the fraud mechanisms used by fraudsters. The first step in the safekeeping of personal banking information is to never disclose a login PIN, user ID, Password or One Time PIN (OTP) to anyone.”

Just Money provides the following tips to prevent becoming a victim of this type of fraud:

• Never reply to the number that is provided in SMS’s from a random sender requesting personal bank information

• Never give out confidential information via e-mail, SMS or over the phone

• Never keep your PIN or passwords on your cell phone

• Change your cell phone banking PIN and online password on a regular basis

Read the full article by clicking here.

Money management tips for single moms

With Mother’s day around the corner we’d like to pay special attention to the fact that there are so many single mothers in South Africa that are solely responsible for the financial management of their households.

In a recent article, it was revealed that only 35% of children in South Africa live with both of their parents, while 40% live with their mothers only. In this article, Paul Roelofse, consumer advocate at the Financial Planning Institute of Southern Africa, offers the following advice for single mothers:

• Budget in order to help you plan better, cover your basic expenses and assist you to get rid of debt
• Save up and keep an emergency fund for peace of mind when unforeseen circumstances arise
• Opt for short-term savings such as unit trusts to support the cost of raising a child
• Consider what you can afford surrounding your child’s education – university costs can be paid off each semester as a living expense
• Getting rid of debt will alleviate the pressure when it comes to buying groceries
• Shopping at stores that sell in bulk will also help you to cut costs
• Avoid debt – try to save 30% of your income for provisions and 30% for debt repayments

Read the full Just Money article by clicking here.

The Benefits of BBBEE

If we are to successfully implement change in our country, a deeper understanding of the initiatives that aim to advance our society must be gained. By understanding the advantages thereof, more doors of opportunity may be opened, which in turn will uplift the people of South Africa.

One such initiative is Broad Based Black Economic Empowerment (BBBEE) which aims to achieve increased participation in the economy and transformation thereof, as well as a greater distribution of wealth in South Africa.

Compuscan Academy supports the Department of Trade and Industry’s (DTI’s) Broad-Based Black Economic Empowerment initiative and as part of its compliance with the BBBEE legislation strives to add to the value of society through its commitment to education and skills development, but furthermore through its contribution to social development and transformation. Compuscan Academy is a level 4 contributor to BBBEE with the status of value added supplier. As a level 4 value-adding supplier our clients can claim 125% of its procurement spend with Compuscan Academy.

To read the full article, click here and to view Compuscan Academy’s BBBEE certificate, click here.

South Africa faced with higher levels of unemployment

In the fourth quarter of 2012, approximately one third of the South African youth between the ages of 15 and 24 were not in employment, education or training (NEET). Of this group, 54.9% were women and 45.1% were men. In total, approximately 3.3 million youth were NEET, according to statistics released by Stats SA, highlighting the challenges faced by the youth of our country in the labour market.

As it stands, South Africa has recently had a decrease in labour force. According to the Quarterly Labour Force Survey (QLFS), also conducted by Stats SA, there was a decrease of 235 000 people between the third and fourth quarters of 2012, taking into consideration those between the ages of 15 to 64. The total South African labour force thus stood at 18.078 million, from 18.313 million in the third quarter. This reflects that the problem of unemployment is not limited to youth entering the workforce and remains a concern for the youth and those above the age of 24. According to Stats SA, the decrease in employment was due to a decrease of 52 000 jobs in the formal sector and 8 000 in private households.

Faced with a somewhat dire situation in terms of employment, the need to equip people with the skills and knowledge to contribute to the workforce becomes all the more vital. Compuscan Academy recognises the impact that education and skills development have in the work environment in terms of the individual’s contribution to the company as well as to their confidence and motivation. We provide a range of courses that equip individuals to become greater assets in the work environment, specifically in the credit and corporate spheres. Further information may be obtained by visiting www.compuscanacademy.co.za or by speaking to one of our helpful consultants on 021 888 6000.

Read the full article here.