Finance

What are the risks in the financial market?

The financial market presents a number or opportunities and risks such as uncertainty, volatility, default risk, market risk, inflation risk, credit risk and liquidity risk.  Essentially, risks in the financial market make it more challenging for individuals or businesses to operate effectively. There are ways to ease the…
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Finance

Bankruptcy defined

Bankruptcy is a legal status that results in an individual or organisation that cannot repay debts either paying debt off or reducing it.  What does it mean to file for bankruptcy?  It enables entities to have a clean slate, but equally important is keeping in mind that there are effects to be dealt…
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Finance

What is a good credit score rating here in South Africa?

Credit scores generally range between 300 and 850. They indicate how risky an entity is.  750+: This score is excellent and you are regarded as the ideal debtor.   720- 749: You are regarded as a safe bet. Creditors regard you as a reliable debtor. Having a very good score such as this will undoubtedly lead…
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Finance

Why is it important to start saving?

Saving money is an ideal way for individuals to secure themselves financially. By having funds stored away, individuals have a healthy nest egg that may help them build wealth.  Here’s why it is important to start saving:  Enables financial independence  Being financially independent means that you can start your own business or…
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