The National Credit Regulator (NCR) is advising the youth to manage their debts especially the usage of retail credit / store cards and student loans. The advise and focus on the youth comes amid the month of June being youth month, says Mpho Ramapala, Manager: Education & Communication at the NCR.
The National Credit Amendment Act (NCAA) states that prospective employers can check credit reports of prospective employees prior to employing them if it is for a position that requires trust, honesty and handling of cash and finances. Therefore, it is critical that the youth manage their finances well when they are still studying because the consequences of failing to do so are dire for their future/careers, says Ramapala.
Tips for students:
- Don’t take credit that you cannot afford to pay back;
- Pay your monthly instalments on time and pay the stipulated amount;
- Don’t start your career / working life paying back unnecessary debt that you acquired whilst studying.
Our message to the youth is that they should stay young, gifted and free and pursue their dreams without fear of being ‘blacklisted’ (a term used for negative listings at the bureaus) as this will taint their credit records and chances of future employment, concludes Ramapala.