Question:
A credit provider recklessly lent me money. What steps can I take to set aside or reverse the loan?

Answer:
Most micro lenders are not regulated, resulting in unscrupulous players entering the market. They operate outside the law according to their own business 'principles' and leave consumers at their mercy — microloans have become synonymous with exploitation.

If you’ve become a victim of such a micro lender, you should try and settle the loan right away to avoid paying future interest. Unfortunately, since you’ve knowingly entered into a contract with the lender, it is not possible to set aside the loan. In future, should you need a loan again, ensure you approach a registered credit provider that adheres to specific guidelines and is regulated by various bodies which act in the best interest of consumers.

Question:
I have R327 000 to invest. What are my best options?

Answer:
You could look at a savings plan or money market funds. Some banks currently offer as much as 10 percent interest per year on savings and the longer you can save, the more you will benefit from compound interest. Over time, this will see your savings grow into quite a tidy sum.

Call accounts with a 32-day notice period and five-year savings policies could also be options, though the funds will not be as easily accessible.

For longer fixed savings terms, you could opt for a savings product with a higher risk factor and higher potential payouts such as unit trust funds. These products are ideal if you have difficulty sticking to a savings plan, because it limits the access to your money.

Bear in mind that the longer your term the smaller your monthly amounts need to be to reach your target. On the other hand, the shorter your term the bigger your monthly amounts will need to be.

Consult an accredited financial advisor who will be able to discuss all the options with you. Look for the best interest rates and review all the costs related to your savings product to confirm what the net return on your savings will be.

For further information about Capitec Bank, click here!

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