Credit ombudsman warns on taking on unnecessary loans

Before taking on debt, the Credit Ombud, Manie van Schalkwyk urges consumers to make sure they understand the true costs of borrowing and payment conditions. While your home loan may cost between 8-12% in interest on outstanding amounts, credit cards will cost you up to 22% interest every month. When it comes to taking short term loans, – credit providers are allowed to charge you up to 60% interest! Credit Ombudsman also warns that consumers should investigate debt consolidation offers from banks thoroughly. On the line to tell us more was Reana Steyn from the credit ombudsman. Visit their website www.creditombud.org.za or call 0861 662 837.