Due to Covid-19 and the lockdown, many South African households had to take on debt just to make ends meet.
Due to Covid-19 and the lockdown, many South African households had to take on debt just to make ends meet.

Set yourself free from debt one small step at a time

By Brandstories Time of article published Sep 28, 2020

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Due to Covid-19 and the lockdown, many South African households had to take on debt just to make ends meet. Old Mutual Rewards can help you unchain yourself one small step at a time.

The debt holiday offered by banks at the start of lockdown gave South Africans a breather, but also saddled them with an additional R20.7 billion of debt.

Nearly half of those surveyed by the 2020 Old Mutual Savings and Investment Monitor Covid-19 Special Report confirmed their personal financial situation was worse than a year ago.

“Being indebted can be overwhelming, making families feel they will never be debt-free, but it’s important to remember that success can be achieved by taking a series of small steps repeated every day,” says Brett Cameron, head of Old Mutual Rewards.

Old Mutual Rewards offers members the ability to redeem their points for vouchers that can be used for groceries, fuel, airtime and now even travel, as a reward for taking steps to protect their financial goals.

The programme is accessible to all South Africans, even if you are not an Old Mutual customer. Simply sign up for the programme now and start earning points by completing any of the questionnaires, using the calculators or watching some of the educational videos.

Watch how easy it is:

If you are an Old Mutual customer, you will receive a percentage of your premiums for your products back in Rewards points monthly. These points can be redeemed at any of our Rewards partners, including KFC, Steers and Uber Eats, used for online gaming with Xbox, PlayStation and Steam, or “cashed in” at health and wellness stores like Dis-Chem and Sorbet.

As the only customer loyalty programme that rewards South Africans for achieving their financial goals, Old Mutual Rewards offers members numerous resources and tools to help understand their finances better and take the necessary steps to reach financial freedom.

“By using our array of free resources and completing online Moneyversity courses (for up to 750 points), the fully digital platform not only helps you save every day, but also offers ongoing incentives to manage your money more smartly,” says Cameron.

Cameron adds that over the past 12 months, almost half of all Old Mutual Rewards members have used the Debt Repayment Calculator (for a reward of 20 points), making it the most popular resource on the digital rewards programme’s platform.

How does this handy Rewards aid help you set yourself free sooner?

Clear as a blue sky

Using information like your loan amount, interest rate, and your current monthly repayment, the Old Mutual Rewards Debt Repayment Calculator shows you exactly when and how you are paying off your debt. This kind of clarity and awareness is crucial when it comes to managing your financial goals and making decisive money moves.

A little goes a long way

In the current economic climate, many South Africans have had to take on personal loans to make ends meet. According to OMSIM 2020, 43% of participants have taken out a personal loan from a financial institution, which is up from 22% in 2019.

However, some people don’t realise that by adjusting their monthly repayments, they could clear their debt even sooner. The Old Mutual Rewards Debt Repayment Calculator is the ideal tool in this instance, because it allows members to see how paying additional amounts will affect their loan term and the total repayment amount in one easy-to-view place.

Cameron explains that “by entering a custom instalment amount that suits your budget, you can see what the impact will be of paying slightly more per month to service debt, enabling you to set and reach realistic financial goals”.

A matter of interest

One of the dangers of a loan is the high interest it accumulates, which is effectively lost money that could be put to better use. Interest rates vary widely and depend on factors such as credit type, repayment term, and your credit score.

“The basic requirement of any loan contract is to meet minimum monthly payments over a pre-determined timeframe. So if you want your loan to cost you as little as possible, pay it back as soon as you can,” says Cameron.

Using the Debt Repayment Calculator, members of Old Mutual Rewards have sight of just how much they will be able to save if they adjust their repayment contributions.

“The only way to experience financial freedom is to make small but consistent steps on a regular basis, and the beauty of Old Mutual Rewards is that you get rewarded for doing just that,” said Cameron.

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