Ramaphosa signs controversial debt-relief bill into law

ToxicBunny

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Think it is a bad thing if most of that debt is from the banks because the bill is footed by paying customers like most of us. If it's from loan sharks then it's a good thing.

End result either way is no more easy loans for the poor. So people will starve/suffer after their once off freebie loan.
It's Def not loan shark debt... That debt isn't listed against any central registers and all that...

All this legislation will achieve in the long run is hiking the risk profile of people earning less than 7500 and make it harder for them to get legitimate debt from registered providers..
 

Mila

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I think some retrenched people are feeling a bit relieved.

But this seems to spell disaster. Yes yes I joked. My debt my responsibility.
 

sox63

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No sympathy to those that lend thousands to this income group. Reckless lenders for sure that deserve the write offs imo
 

koeks525

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I don't feel bad about this one. It is shocking how easy it is to get credit, and a car. Lets not talk about the big credit lines one can get for a low income bracket.
 

maumau

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So anyone who earns under R7 500 and owes R30k must QUICKLY borrow another R20k.
 

gamer16

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But if you earn less that 7.5 how would you have managed to rack up 50k in debt?
 

Arzy

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But if you earn less that 7.5 how would you have managed to rack up 50k in debt?
That question is why I don't see this as a bad thing.

Responsible financial institutions should not be extending credit of that level to people who can't afford it.

If they do this is a mechanism whereby they get penalised and the borrower still effectively has to pay it back.
 

SaiyanZ

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But if you earn less that 7.5 how would you have managed to rack up 50k in debt?

It goes up fast due to non-payment.

I was actually subject to fraud a few months ago on a store credit card I hadn't used for over 12 years. Didn't even know the card was still active. This was in April and the amount was R10k. Investigation has been ongoing and I have just been handed over to collectors this week. The amount I owe now, just 4 months later is about R14k.
 

Paul_S

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I don't feel bad about this one. It is shocking how easy it is to get credit, and a car. Lets not talk about the big credit lines one can get for a low income bracket.
This is a two edged sword.
The good thing is it will make banks think twice about offering loans to people who can't afford it.
The bad thing is it will make banks think twice about offering "affordable" loans to people who may need it.

I think the end result is a lot of people are going to take up loans from loan sharks at much higher interest rates because banks are no longer willing to assist them.
 

IssiAmd

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May 8, 2012
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So if I stop paying now I can get it extinguished... what does the law say regarding future debt?

Are they going to black list people? For how long?
Nah
Catch is you need to be earning under 7500
They've thought that much through
 

LazyLion

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Mar 17, 2005
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This always sounds like a terrible generalisation when I post this... but I'm gonna say it again...

Based on my own personal observations of our own staff, most of these people are living beyond their means.
They have Edgars accounts and buy shoes and clothes that I MYSELF would never buy.
Leather Jackets, Fancy boots, designer jeans (could be fake), jewellery, and gadgets... that I myself avoid as over-priced and excessive.

And until that culture of visual excess stops, there is going to remain a debt problem for many of these people.
 

daveza

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So you buy something you can't afford, you don't have to pay for it and you get to keep it - while the seller gets zip.

How does that in any way seem right.
 

supersunbird

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Oct 1, 2005
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So you buy something you can't afford, you don't have to pay for it and you get to keep it - while the seller gets zip.

How does that in any way seem right.
The seller gets his money, The credit provider though, well, did he do his due diligence when providing the credit?
 

rwenzori

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Write-offs happen all the time. Most of it in business.
Yes. Any bank that has not already got these vrot loans provided for on the balance sheet is not accounting honestly ( thinks... remember African Bank version 1.0 ??? ).
 

surface

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Oct 23, 2006
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It's Def not loan shark debt... That debt isn't listed against any central registers and all that...

All this legislation will achieve in the long run is hiking the risk profile of people earning less than 7500 and make it harder for them to get legitimate debt from registered providers..
It says "unsecured loans" - surely this includes loan sharks as well? Apart from the official loan sharks like wonga etc? And if it is not listed, how would govt clear it?
 

evilstebunny

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Dec 20, 2007
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So you buy something you can't afford, you don't have to pay for it and you get to keep it - while the seller gets zip.

How does that in any way seem right.
Seriously? Stealing is the national pasttime in this country..
 
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