Tuesday, 14 April 2020

Prime lending rate - Cut in the repo rate and what it means for stressed South Africans


Reserve Bank cuts the repo rate that will result in the lowering of the prime lending rate.

The Reserve Bank has cut the repo rate by 100 basis points or one percent effective 15 April 2020. This will result in a lowering of the prime lending rate.

WHAT DOES THIS MEAN FOR SOUTH AFRICANS WITH DEBT?
This is the third lowering of the lending rate this year and it indicates Government is well aware of the impact of Covid-19 and the lockdown on the finances of the people of South Africa.
The lowering of the repo rate and as a result the lowering of the prime lending rate means that your debt payments will become marginally smaller. 

It however does not offer enough debt relief. Incomes will decrease and living expenses will explode. 

If you are exposed to debt our advice is to urgently reduce this exposure. If you have any debt you have to reduce the balance as quickly as possible or ask for government regulated debt relief.

We can only pray this virus dies soon so we can begin to rebuild. 

For advice and a FREE ASSESSMENT of your situation complete the form located here
Eugene Prinsloo
Debt Specialist and Senior Advisor 
Consumer Debt at Fresh Start Debt Solutions