The cash loans are multi-purpose loans that can be used for anything. People usually use these bills to keep ahead of their bills. There are times when the expenditures for month exceed the inflows and hence, people get short of money. Therefore, they can avail this loan to catch up on their unpaid bills for the month. A failure to pay these bills can create more problems such as paying a higher cost and so on.

Furthermore, the cash loans can also be used by individuals to get their school material. As these loans can be borrowed by anyone, students can also apply for these loans to satisfy their school necessities. Apart from this, the money from such loans can also be used by parents to satisfy their child’s need of buying a particular outfit for a particular event.

These are just a few uses for which cash loans can be taken. Apart from these a lot of other needs especially the day-to-day needs can also be fulfilled using these types of loans. These would include repairs and maintenance, medical expenses and   the list continues.

However, always remember to avail cash loans when they are really needed as these loans have an additional cost associated with them. Paying an additional cost, the interest, to satisfy a need that can be satisfied at a later date, makes no sense.

•    The Reserve Bank of South Africa controls all money that leaves South Africa.
•    If you are South African and you are 18 years or older you are permitted to use in total an amount of R1 million a year for unrestricted expenses overseas, which includes gifts, travel and loans to foreign citizens.
•    There are no limits on the amount of money that SA citizens are allowed to receive from citizens overseas, and the donations will not be taxed.
•    The amounts sent to South Africans from outside its border can be as big or as small as you wish.
•    Foreign exchange regulations from the country of the donation could be subjected to regulations.
•    Making use of a local bank of the country where the money is being sent from is a good idea, as they will be able to advise the sender of any regulations and legislation pertinent to the donation.

If a South African lives overseas and would like to donate money to a foreigner the rules of South African legislation would then apply unless the SA donor works overseas and is a taxpayer of the country that he or she is a resident of.

If that particular South African should donate more than R100 000 a year they will be obligated to pay the require 20% on the amount if it exceeds the amount of R100 000.

South African citizens are limited to sending or spending only up to a million rand overseas per annum.

There are many rules and regulations that apply to receiving monies to and from South Africa. Your bank or your Forex agent will be able to advise you.

There are few South Africans that do not have family and friends living overseas. Therefore the sending and receiving of funds and money is very commonplace today.

There are a couple of things you need to know about sending money overseas or receiving a money gift from outside the borders of South Africa.

•    Your bank or your Forex agent can send money abroad on your behalf.
•    They will be able to explain in detail how the tax and foreign exchange control works.
•    Shop around for the best options, and remember that your bank is not always necessarily your cheapest or best option.
•    Forex agents are often cheaper and a little more “hands on” than the larger institutions.

Donations Tax – what is it and how does it work?

•    South Africans are permitted to donate up to an amount of R100 000 annually.
•    For amounts over and above R100 000 you are going to be taxed 20%.
•    Donations between spouses are not charged donations tax.
•    Only South African citizens pay donations tax.
•    Citizens of other countries in SA are exempt from donations tax.
•    Depending on the length of stay in SA, this will indicate whether the foreigner is considered to be South African or not. 
•    If a foreigner has spent in excess of 91 days for a consecutive five years or has spent more than 915 days in SA in total, they would then be subjected to paying donations tax.

For the purpose of foreign exchange control, foreigners living permanently in SA are regarded as citizens of South Africa

California bans Insurance Discrimination against women
The National Women’s Law Center’s (NWLC) in the United States of America is highlighting how the business insurance industry discriminates against women.
Governor Schwarzenegger has responded by enacting a law in California banning insurance companies from practicing gender ratings and charging the female gender more and also signed the gender rating bill, a bill that would have required health plans to cover maternity services.
Insurance companies charge women as much as 48% coverage more than men.It is expensive and difficult for women to find coverage for maternity care.A state-by-state overview of how insurance practices adversely impact womenWomen are denied coverage for pregnancy.

SA’s Prospects for 2012

What Are The Prospects For SA’s Economy in 2012?

South Africa’s money matters are intertwined with the rest of the world, which is presently under pressure. If others stumble, so will we.
America does not seem to be making much economic progress, and Europe isn’t making progress in solving its crisis. The Middle East and North Africa still remain unstable, too.
The oil price still remains at $100 a barrel.
Inflation:
• The inflation rate is set to exceed 6% by the end of 2011and should remain there for the first part of 2012, but will gradually drop towards the end of the year.
• It seems that an average rate of 5.6% inflation rate is expected in 2012, compared to that of 2011 which stood at 5%.
• Increases in municipal bills could add pressure on the individual pocket.

Interest Rates:
• Interest rates have dropped 6,5% over the past 5 years.
• This makes debt less stressful.
• The prime lending rate is 9% and has said to remain stable this year, and could be the trend right into 2013.
• If interest rates do change, they are more than likely going to drop and not rise.
• This does not bode well for pensioners that are living on interest.

Our Rand:
• The longer the situation is drawn out in Europe, the longer the rand will remain weak.
• This does not bode well for people travelling abroad and also for those that import.

Live within your means and avoid unnecessary debt and continue to save as best you can.

Beware Foreign Lottos

Many Have Been Alerted To The ‘Millions’ We Have Won

• Scammers are really smart, and a day seldom goes by without a notification from some amazing international lotto that an individual has won.
• Be alert at all times and beware of all the fake lotteries that are out there, ready to ensnare the unsuspecting.
• You will be either informed by SMS or email; and we are not talking about rands, these are fake lotteries where you stand to win millions in euros, dollars and pounds.
• Many individuals fall into this type of trap, and are then persuaded to part with thousands of rands and they never win a dime.
• A typical example is after you have been informed of your windfall, you are told you first have to pay taxes to release your money or you have to pay an administration fee.
• Another typical scam is all the fake “prizes” that you have apparently “won”.
• It is quite simple, really, no lotto ticket, and no win. It is that obvious.
• No lottery has every picked random email addresses or telephone numbers and rewarded individuals that have not even paid for a lotto ticket; it makes perfectly reasonable and good sense.
• If you ARE lucky enough to win a prize or something you are not aware of, you can always find out more, especially if the company is a well-known one, by visiting the website, and then calling the head-office to verify the win.
• Never open any links from banks; these are phishing expeditions.

Your bank will never request your personal information on email or sms, for personal information.

Ten Pointers to Illustrate Investment and Risk

Investment Strategies To See You Through
• When it comes to investing, entrepreneurs have a tendency to be protective of their hard-earned money.
• Unsurprisingly, even the bravest investors started selling off their shares in 2008 when the Dow Jones plummeted to an all-time low.
• You need to establish an investment strategy that will see you through good and bad times.
• Assess your personal tolerance for investment risk.
• Your personal circumstances will give a very different sense of risks you are willing to take in building the private equity of your business versus those you are willing to take with liquid investments of which you have little or no control.
• Your tolerance for investment risk can fluctuate based on how much financial security you have already created for yourself.
• Consult with an investment advisor about long and short-term investments before making any decisions.
• Create a plan that will provide you with potential for capital appreciation and income generation, but one that will also give you peace of mind.
• Always match your investment to your investment personality.
• No investment is 100% safe.

Investors who panic when the market collapses and hope to get on the bandwagon when markets improve usually risk losing their original investment.

Contract for Difference Investments

A New Form of Investment; Contract for Difference Investments
There is a new form of investment that is gaining popularity which appeals to the up-market private investor; an investor who is looking for flexibility and a need to make the most of assets.
The investment is called Contract for Difference Investments. CFD’s are agreements to exchange the difference of a financial tool between the time at which the contract is opened and the time the contract is closed.

Unique features that make them attractive to retail investors and institutions are the fact that they are transparent and their pricing.

What, then, are CFD’s and how do they work?
• FD’s were originally utilised by investors of institutions to hedge their exposure to stocks.
• They are gaining popularity among retail investors.
• They have a couple of unique features that make them particularly attractive to investors; these are transparency and pricing.
• Only an initial deposit is required when trading a CFD.
• The initial deposit amount depends on how volatile the market it.
• They provide a lucrative way in to the equity market.
• The product is therefore leveraged and the investor needs to be attentive to risks.

The lucidity of CFD’s is attractive; what you see is what you get. You pay commission on your trade and any interest costs are subtracted and charged separately and calculated immediately so that you are aware of the monies involved right from the outset.
When trading CFD’s it is important for investors to research the company that they decide to trade with, and consider the technology offered by the company you select.

Take a pinch of negative retail sales, a dash of high unemployment and add to a £15.9 billion public sector net borrowing requirement. Be sure to squeeze household spending then rub in high inflation, low wage growth, public sector job cuts and crippling austerity measures. Combine the two mixtures, bring to the boil for a few months and serve on a platter of Eurozone debt contagion and a slowdown in global growth. If that isn’t a successful recipe for a recession I don’t know what is.

The IMF told us little that we don’t already know when they lowered their growth forecasts for the UK last week and there are certainly more tough times on the horizon. So, surely we can expect swift and decisive action from central banks and governments alike in an effort to baton down the hatches in the eye of the storm? Well, not necessarily.

The Bank of England minutes revealed that only one MPC member, Adam Posen, voted for further QE at the September meeting. All of the MPC elected to keep interest rates unchanged but when it came to the crucial question the minutes say “for some members, continuation of the condition seen over the past month would probably be sufficient to justify an expansion of the asset purchase program at a subsequent meeting”. Translation – we need to see a poor Q3 growth estimate, the final nail in the coffin, before we will agree to act. Most market participants believe more QE will come through in November although some believe we will get an extra £50 billion as soon as October.

It is difficult to gauge the potential effect of the program given the current state of the global economy. The good news is that it will definitely have a positive impact which is a boost the UK economy is long overdue.

Key releases for Sterling this week

Please note that movements on currency markets will be dominated this week by the unfolding sovereign debt crisis in Europe. If you would like to take advantage of our free rate watch service please contact your dedicated dealer.

Mortgage approvals are out on Thursday at 9.30am – we are expecting a fairly flat to mildly positive reading which will be bullish for Sterling.

Gfk consumer confidence out on Thursday at midnight – we are expecting a poor reading which will be bearish for Sterling.