Money Matters – Hire Purchase & UIF

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Buying on hire purchase

Understanding the advantages and risks of a hire purchase agreement.

What is the difference between a hire purchase and loan?

Hire purchase is when a buyer signs a contract agreeing to pay for certain goods over a fixed period. It is popular with rent-to-buy agreements for property and cars. Unlike a loan, you don’t own the goods until the final payment.

Is a hire purchase agreement the same as leasing?

Although it works similar to a leasing agreement, it differs. When you buy a car on hire purchase, you will eventually own it, whereas a rental vehicle will never be yours.

What are the advantages of buying on hire purchase?

Not everyone can pay for these goods, such as cars and houses, in cash. So, through hire purchase you have the option to pay them off at competitive rates, and eventually own them.

What are the risks involved with hire purchase?

Although a hire purchase offers you an opportunity to own certain goods, it does not guarantee any protection should they be damaged or lost during the period of the agreement. Any time you miss payments or go bankrupt, the lender of the goods has the right to repossess them.

Will I get my money back if I get out of a hire purchase agreement?

No, unfortunately you are bound by the contract to fulfil your instalments until the end of the fixed term.

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UIF claiming made easy

Learn about the UIF claiming process so you can get all the benefits in time, and without a hassle.

How long does the UIF claiming process take?

The maximum time it takes for payments to start coming through after registration is eight weeks. You will receive payments every month until your benefits run out.

 

How do I lodge a claim?

The first step is to go to the Department of Labour with your ID book or Smart ID, as well as copies of your last six payslips. You will then fill in two forms – one with your banking details and another that proves you are no longer employed. Download these forms from labour.gov.za or visit the department directly.

 

How much can I claim for?

The money you are paid depends on your salary. You receive a percentage of the salary you earned while you were actively registered and contributing to UIF, up to 56%.

 

Do I qualify to claim for UIF?

UIF is available to anyone who registered, and it can be anyone in any profession. It generally covers the following claims:

  • Pregnancy,
  • Retirement,
  • Illness and death, and
  • Cases where the company shuts down.

Remember, if you resign from your job, you cannot claim for UIF

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