Bad news - no need to pay debts





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  1. #1
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    Thumbs down Bad news - no need to pay debts

    I really thought that the proposal to write off debts was scrapped. No. It was signed off. Free housing, free electricity, free water, free loans...

    https://www.fin24.com/Economy/banks-...elief-20190816

    For me this is pure madness. Word will be that taking loans is OK. No need to pay back.

    There is only one good news. Maybe giving unsecured loans will be cut down. Edcon, loan sharks, Capitec... will suffer.
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    Default Re: Bad news - no need to pay debts

    Weird that article says the debt right off is limited to certain criteria only:

    The bill provides for the extinguishing of the debt for consumers who earn a gross monthly income of no more than R7500, have unsecured debt amounting to R50 000, and who have been found to be critically indebted by the National Credit Regulator.
    I sadly thought it was for every one...
    SPOON!

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    Default Re: Bad news - no need to pay debts

    This is good news, not bad news?!?

    Stop the practice of unsecured loans to people that cannot afford to pay it back.

    If lenders do not want to listen then they must carry the consequences.
    Regards
    HeinrichC

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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by HeinrichC View Post
    This is good news, not bad news?!?

    Stop the practice of unsecured loans to people that cannot afford to pay it back.

    If lenders do not want to listen then they must carry the consequences.
    Thats fair. Too many unsophisticated people with access to ''easy'' loans getting themselves into high levels of debt.
    There is no such thing as inclement weather, only poor selection of clothing.... or Vehicle

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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by Jouko View Post
    I really thought that the proposal to write off debts was scrapped. No. It was signed off. Free housing, free electricity, free water, free loans...

    https://www.fin24.com/Economy/banks-...elief-20190816

    For me this is pure madness. Word will be that taking loans is OK. No need to pay back.

    There is only one good news. Maybe giving unsecured loans will be cut down. Edcon, loan sharks, Capitec... will suffer.
    Reading the full article, it is not that severe. Debt can be ''suspended'' for up to 24 months and in certain circumstances thereafter, cancelled.
    There is no such thing as inclement weather, only poor selection of clothing.... or Vehicle

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    Default Re: Bad news - no need to pay debts

    Has anything executed by this government been a good idea?


    Just saying...


    Now watch this space!

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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by Roberto Betta View Post
    Has anything executed by this government been a good idea?


    Just saying...


    Now watch this space!
    Well, you seem to think the new SA flag is cool so that can serve as an example of a successful government project that you agree with.
    Regards
    HeinrichC

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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by Estee View Post
    Reading the full article, it is not that severe. Debt can be ''suspended'' for up to 24 months and in certain circumstances thereafter, cancelled.
    I read the article. We still need the full details but consider the fact that less sophisticated people are the big majority to whom these loans have been pushed to. They will get the word that they do not need to pay. At the end they will not pay. I suspect that the provision to suspend only is just to have some excuse politicians are going to use.

    Where is that R20 bilj coming from? How long it takes until they change the limits or include additional people to benefit? Look at SOWETO water and electricity payments. They keep writing off old debts and for over 20 years people have not paid and many of those could easily afford to do. Culture of no payment is as difficult to get rid off as bribery. Crime has the same problem. Word on the street is that if you do crime there is very small change that cops will get you, if they get you some lawyer gets you out...

    I have been saying for a long time that Capitec will be hit if this no pay loans come to effect and that happened now. Lets see what will be the end.

    What stops for instance me getting a huge loan, make bad business decision and I will "lose" my monies. I take no salary from any official source and claim poverty. Will they write off my debts? If the wording in the regulations is as they seem to do - poor - my debts will be written off.
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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by HeinrichC View Post
    Well, you seem to think the new SA flag is cool so that can serve as an example of a successful government project that you agree with.
    Fair point.

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    Default Re: Bad news - no need to pay debts

    It just paves the way for people to lend even more and more money. So you wont stop the problem.

    The current finacial downward spiral we are caught in are just pulling us closer to a total collapse like zim and other countries.
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    Default Re: Bad news - no need to pay debts

    The poorest of the poor should not be allowed to take out a loan, as harsh as it seems.
    Earning R7'500 a month is borderline poverty, and even having to pay back (for arguments sake) R150 a month, could have dire consequences for the debtor who has to pay rent, feed probably many mouths, pay an existing funeral policy, transport costs to work and just doesn't have the extra R150 to pay back.

    The banks and registered loan facilitators will adjust accordingly, and sell off their debtors book.
    But the sad truth is that the lower earning income group will be forced to take loans from the "Mashanisa's" and that is where they are trapped in servitude and debt to a gangster.
    I met some crazy people.... They made me their leader.

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    Default Re: Bad news - no need to pay debts

    The actual amendment bill...
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    Default Re: Bad news - no need to pay debts

    More information:
    https://www.businessinsider.co.za/ho...ff-debt-2019-8

    Something like 17% of the total population will be considered. Considering the steps there have to be a lot of people are needed to run the system. Who is going to pay that? What about bribery? "I will get R60 000.00 written off but you give me R6000.00. My brother here will borrow you the money."
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  21. #14
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    Default Re: Bad news - no need to pay debts

    More information in form of comments. I happen to agree with what will happen

    https://www.fin24.com/Opinion/why-th...umers-20190818

    Part of the reasons why Marikana happened were loan sharks. There are very many people who do not understand interest and finances in general.
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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by HeinrichC View Post
    This is good news, not bad news?!?

    Stop the practice of unsecured loans to people that cannot afford to pay it back.

    If lenders do not want to listen then they must carry the consequences.
    Exactly, and hopefully the number of loan sharks (see most retail businesses) will be significantly less.

    I have stopped counting how many emails / sms I get a week from some company trying to lend me some money.

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  24. #16
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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by Grubscrew View Post
    Weird that article says the debt right off is limited to certain criteria only:



    I sadly thought it was for every one...

    Damn!

    And here I thought I finally had a chance to get that Porsche 911

  25. #17
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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by AlexP View Post
    The poorest of the poor should not be allowed to take out a loan, as harsh as it seems.
    Earning R7'500 a month is borderline poverty, and even having to pay back (for arguments sake) R150 a month, could have dire consequences for the debtor who has to pay rent, feed probably many mouths, pay an existing funeral policy, transport costs to work and just doesn't have the extra R150 to pay back.

    The banks and registered loan facilitators will adjust accordingly, and sell off their debtors book.
    But the sad truth is that the lower earning income group will be forced to take loans from the "Mashanisa's" and that is where they are trapped in servitude and debt to a gangster.
    If loans wonít in-debt them inflation and ever fuddy duddy thing government implements to milk us for more money to try keep SA afloat will. Thereís no getting away from it in my view unless of course we have a dispensation that can manage money.

  26. #18
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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by Jouko View Post
    I read the article. We still need the full details but consider the fact that less sophisticated people are the big majority to whom these loans have been pushed to. They will get the word that they do not need to pay. At the end they will not pay. I suspect that the provision to suspend only is just to have some excuse politicians are going to use.

    Where is that R20 bilj coming from? How long it takes until they change the limits or include additional people to benefit? Look at SOWETO water and electricity payments. They keep writing off old debts and for over 20 years people have not paid and many of those could easily afford to do. Culture of no payment is as difficult to get rid off as bribery. Crime has the same problem. Word on the street is that if you do crime there is very small change that cops will get you, if they get you some lawyer gets you out...

    I have been saying for a long time that Capitec will be hit if this no pay loans come to effect and that happened now. Lets see what will be the end.

    What stops for instance me getting a huge loan, make bad business decision and I will "lose" my monies. I take no salary from any official source and claim poverty. Will they write off my debts? If the wording in the regulations is as they seem to do - poor - my debts will be written off.
    You won’t get the loan in the first place. The major complaint from all and sundry has been that the poor don’t have access to loans - this has made the problem much much worse. Unintended consequence - instead of people being able to go to banks, albeit at punitive rates, they’ll now go to backyard moneymen, pay usurious rates and get their legs broken when they don’t pay. That’s going to help a lot
    Last edited by Gungets Tuft; 2019/08/18 at 09:49 PM.
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  28. #19
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    Default Re: Bad news - no need to pay debts

    Quote Originally Posted by Gungets Tuft View Post
    You wonít get the loan in the first place. The major complaint from all and sundry has been that the poor donít have access to loans - this has made the problem much much worse. Unintended consequence - instead of people being able to go to banks, albeit at punitive rates, theyíll now go to backyard moneymen, pay usurious rates and get their legs broken when they donít pay. Thatís going to help a lot
    I agree. What is scary is the info in my post #14. There is one mashonisa (illegal loan shark) for every 100 households in the poorer areas.

    We will have increasing number of salary increase demands, increase in social grants, violence... I saw a report where one of the root causes that started Marikana was that people had debts over their heads.

    But this taking loans by poorer section of the population is not all. Buying food on credit card and rolling over the CC at the end of the month is no better than those who take these unsecured loans and may now get them written off.

    Both methods of taking loans are pure madness.
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  30. #20
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    Default Re: Bad news - no need to pay debts

    It is not just loans, but also clothing and furniture accounts. One of the first things some new employees in the below R7500 category do is to request a letter of employment in order to open clothing or furniture account.

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