What “Junk Status” Means for SA Car Owners
South Africa is currently dealing with the economic reality of being downgraded to junk status. As a car owner,what are the implications of this junk status?
As the year began, you may have planned to buy a car and searched for car insurance quotes online . Now as we deal with the news that South Africa was downgraded to junk status by various ratings agencies, you may be asking, “What does this mean for consumers and will applying for credit become more difficult?”
There is widespread speculation that, as a country, we will experience food and fuel price hikes, and that the government will have less money to spend on social welfare and service delivery. What will this mean for you as a car owner?
If you’ve been thinking of buying a car, or if you’re still paying it off, here are a few considerations to bear in mind:
- Be strict on savings. Saving money may not be the easiest thing to do but it is worthwhile and can come to your rescue in your most difficult times.
- Stick to your budget. Nobody knows how long SA will hold the junk status title, so ensuring you are sticking to your budget is an effective way to endure this difficult period.
- Settle outstanding debt. Many people find themselves borrowing money from more than one entity, causing them to struggle to meet payment deadlines. Set deadlines for yourself every month to pay off your debt.
- Analyse your monthly expenses. So often, people do not realise the amount of money they’re spending on unnecessary items each month. Be firm when cutting down on certain costs.
- Try to avoid cutting down on your car insurance. Feeling the pinch may cause you to contemplate calling your insurance company and cancelling your car insurance. Rather browse through car insurance quotes for a more affordable option that will protect you in the long run.
Don’t let junk status get you down. Being savvy with your money will ensure you save.
