Responsible borrowing


  • The beneficiaries will be able to
  • Conduct a personal financial audit
  • Explain the role of the CPA
  • Work out the total cost of credit applied for

What is the Consumer Protection Act?

The act provides consumers with a greater level of protection against providers of goods and services. Some of the roles of the CPA are

  • It lays down norms and standards to protect consumer.
  • It prohibits certain unfair marketing and business practices.
  • It promotes responsible consumer behaviour.

Qualifying for credit vs affording.

  • Do a financial  check
    • Create a list of all your debt and monthly expenditure.
    • Can you afford the monthly repayments and maintain your lifestyle?
    •  If the answer is no, you may need to reassess your spending habits.

  • Make financial resolutions
    If, by the first of each month, you’re left wondering where your salary went then it is time to get a grip on your finances. Start thinking with a frugal mind and make saving a habit. Set yourself goals to pay off debt by a certain date.

  • Don’t make more debt
    If you can’t really afford to buy the latest flat screen TV, then don’t do it. Putting food on the table is more important than keeping up with the Joneses. Rather focus on settling your current debt first. Remember to settle debt with higher interests first.

Understanding total cost of credit (CoC).

Amount borrowed (AB)-Loan amount

Interest (I)-What the lender will add on the amount borrowed

Administration costs (AC)-additional cost

Insurance (INS)- to cover outstanding balance in case of e.g. death or disability

CoC = AB +I +AC + INS

Contracts: It is your responsibility to make sure you understand the contract before signing.