SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Investigate credit in own circumstances 
SAQA US ID UNIT STANDARD TITLE
10715  Investigate credit in own circumstances 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 2  NQF Level 02  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2002-06-12  2005-06-12  SAQA 0742/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2006-06-12   2009-06-12  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
119912  Investigate credit in own circumstances  Level 2  NQF Level 02  3   

PURPOSE OF THE UNIT STANDARD 
This unit standard provides a broad introduction to the real cost of credit. It is one of a series of unit standards on financial literacy intended to empower learners to manage their own finances responsibly. The focus is knowledge, skills, values and attitudes in relation to the learner`s own context.

The qualifying learner is capable of
  • Understanding the different kinds of credit available and the implications of credit contracts.
  • Researching the cost and possibility of credit in relation to a home loan.
  • Identifying the impact of credit on the purchase of household and personal items and how the use of credit adds to the cost of an item.
  • Making an informed decision on whether or not to purchase goods on credit.
  • Understanding a contract installment sale agreement.
  • Making a decision about what goods should/should not be purchased on credit.
  • Understanding the danger of becoming caught in a debt spiral. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should
  • Hold a GETC or equivalent qualification. Or
  • Be competent in communication and mathematical literacy NQF level 1. 
    		•

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is
    1. Hidden costs in purchasing a home include lawyers fees, transfer costs, removal costs, bond insurance, deposits for electricity and water, rates, telephone installation, additional electrical connections, etc.
    2. Hidden costs of buying on credit include cost of cheques, debit orders or other methods of monthly payment, insurance.
    3. Credit includes credit cards, store cards, accounts, money obtained from micro lenders.
    4. Types of credit providers include bank loans, micro lenders, opening an account at a retail store, doctor`s accounts, and Installment Sale contracts or credit agreements and credit cards.
    5. Consequences of not meeting fixed payments are judgements against name, eviction, repossession and blacklisting.
    6. Ways of financing a vehicle include lease, installment sale, building in a residual and cash.
    7. Revolving credit limit includes credit at a retail store or on a credit card. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Discuss the different types of credit available to an individual in own situation 
    OUTCOME NOTES 
    Discuss the different types of credit available to an individual in own situation and the basic principles and legal implications of credit contracts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. An indication is given of when credit is a possible solution. 

    ASSESSMENT CRITERION 2 
    2. The dangers of borrowing on a regular basis are explored in terms of the debt spiral. 

    ASSESSMENT CRITERION 3 
    3. The benefits of credit are compared and contrasted to those of saving and purchasing for cash. 

    ASSESSMENT CRITERION 4 
    4. The benefits and costs of credit are outlined with reference to personal experience. 

    ASSESSMENT CRITERION 5 
    5. The mathematical calculation of compound interest is demonstrated in the context of the cost of credit. 

    ASSESSMENT CRITERION 6 
    6. The concept of interest rates is explored and an indication given of the impact of the length of the repayment period on the final cost of an item. 

    ASSESSMENT CRITERION 7 
    7. Loan repayment time periods are discussed in the light of possible life changing circumstances. 

    ASSESSMENT CRITERION 8 
    8. The legal responsibilities and rights of both the consumer and the supplier are explained with reference to common contracts. 

    ASSESSMENT CRITERION 9 
    9. The concept of surety is demonstrated with reference to the legal obligations of all parties involved. 

    SPECIFIC OUTCOME 2 
    Research the cost of credit involved in buying a property/home. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Criteria for qualification for a first time home owner's grant or other government assistance are listed in a checklist. 

    ASSESSMENT CRITERION 2 
    2. The amount needed as a deposit is calculated and added to the checklist. 

    ASSESSMENT CRITERION 3 
    3. The effect of the amount of the deposit on the monthly repayment is calculated at the current rate of interest. 

    ASSESSMENT CRITERION 4 
    4. The percentage of salary/wage/remuneration allowed as a monthly deduction is established, calculated for own salary and added to the checklist. 

    ASSESSMENT CRITERION 5 
    5. A decision is made about a location of choice for a home and the prices of homes in the area are investigated using newspapers, flyers and other advertising media. The information is added to the checklist. 

    ASSESSMENT CRITERION 6 
    6. Interest charged on a bond is investigated for three institutions that offer home loans. 

    ASSESSMENT CRITERION 7 
    7. The monthly cost of a bond repayment is calculated for a selected property at the rates quoted by the three institutions. 

    ASSESSMENT CRITERION 8 
    8. The hidden costs in buying a home are investigated and added to the checklist. 

    ASSESSMENT CRITERION 9 
    9. The implications and consequences of missing a monthly payment are explained for one month, several consecutive months and an extended period. 

    ASSESSMENT CRITERION 10 
    10. Reasons are given to explain why repayment of a bond should be a priority when a homeowner has spare funds available. 

    ASSESSMENT CRITERION 11 
    11. The effect on a bond of making both early and late payments is explained and a decision is made as to when it is best to make a monthly repayment. 

    ASSESSMENT CRITERION 12 
    12. The impact that an increase in interest rate would have on a bond repayment is calculated for five different rates. 

    ASSESSMENT CRITERION 13 
    13. The impact that an increase in monthly repayment would have on reducing the bond amount and in consequence saving on interest is investigated for monthly repayments of five different amounts. 

    ASSESSMENT CRITERION 14 
    14. Ways of rescheduling debt on a home loan are investigated and the effect on the final cost of the home is calculated. 

    ASSESSMENT CRITERION 15 
    15. The overall cost of a property at the current rate of interest is calculated over a period of 20 years. 

    SPECIFIC OUTCOME 3 
    Research the cost of credit on household items. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Five household items are selected and the cost of each if bought for cash, on contract installment sale over 6 months, 12 months and 24 months and presented in a table. 

    ASSESSMENT CRITERION 2 
    2. The consequences of not paying an account on time are explained for a credit card, retail store account and money from a microlender. 

    ASSESSMENT CRITERION 3 
    3. The possible life span of each item is estimated and a decision is made as to whether it is better to buy on credit or pay cash. 

    ASSESSMENT CRITERION 4 
    4. The hidden costs of buying on credit are investigated for household goods. 

    SPECIFIC OUTCOME 4 
    Research the cost of credit on clothing and consumable goods. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of revolving credit is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The life span of ten items of clothing or consumable goods is estimated and the dangers and disadvantages of buying such items on credit are discussed. 

    ASSESSMENT CRITERION 3 
    3. A set of rules for buying clothing and consumable goods on credit is compiled for use in own life decisions. 

    ASSESSMENT CRITERION 4 
    4. The possible advantages and disadvantages of having more than one store card/account are discussed and personal measures to use cards/accounts responsibly are suggested for own financial situation. 

    SPECIFIC OUTCOME 5 
    Investigate the options for financing a vehicle. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The different ways of in which you can finance a vehicle are named and an indication given of the implications of each method of payment. 

    ASSESSMENT CRITERION 2 
    2. The requirements for comprehensive insurance are explained with reference to the method of purchase. 

    ASSESSMENT CRITERION 3 
    3. The effect of depreciation on the value of the vehicle is examined in relation to the value of a vehicle as an investment at the end of the payment period. 

    ASSESSMENT CRITERION 4 
    4. Additional costs involved in running and maintaining a vehicle are investigated and an indication given of how this impacts on an individual's provision for vehicle financing. 

    ASSESSMENT CRITERION 5 
    5. The need for additional insurance if a vehicle is financed is explained with reference to the potential risk if the vehicle does not survive the installment term. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, - INSQA framework for assessment and moderation. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems and make decisions relating to the use of credit in his/her own life by understanding the consequences of buying on credit. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself by undertaking personal financial planning. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information by investigating avenues of credit, calculating the effects of varying interest rates and ensuring credit options meet his/her own specific needs.

    The learner is able to collect, organise and critically evaluate information relating to credit options. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations when explaining the terms of the contract or contract installment sale and the rights and responsibilities of the supplier and purchaser under the contract. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use science and technology effectively and critically when using a calculator to calculate interest and the cost of credit. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising how irresponsible decisions about the use of credit impact negatively on his/her own life. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is able to participate as a responsible citizen in the life of local, national and global communities by beginning to understand the debt spiral and making personal decisions to keep out of debt. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 119912, which is "Investigate credit in own circumstances", Level 2, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  48783   National Certificate: Financial Services  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Fundamental  14657   National Certificate: Insurance Administration  Level 2  NQF Level 02  Passed the End Date -
    Status was "Registered"     		 2004-04-18  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.