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
119912  Investigate credit in own circumstances 
ORIGINATOR
SGB Insurance and Investment 
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 "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10715  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
  • Discussing the implications of credit contracts.
  • Researching the cost of credit in buying a property or home.
  • Researching the cost of credit on household items.
  • Researching the cost of credit on clothing and consumable goods.
  • Investigating the options for financing a vehicle. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication at NQF Level 1 or equivalent.
  • Mathematical Literacy at NQF Level 1 or equivalent. 
    		•

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Hidden costs in purchasing a home include lawyer's fees, transfer costs, removal costs, bond insurance, deposits for electricity and water, rates, telephone installation, additional electrical connections, etc.
  • Hidden costs of buying on credit include cost of cheques, debit orders or other methods of monthly payment, insurance.
  • Credit includes credit cards, store cards, accounts, money obtained from micro lenders.
  • 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.
  • Consequences of not meeting fixed payments are judgements against name, eviction, repossession and blacklisting.
  • Ways of financing a vehicle include lease, installment sale, building in a residual and cash.
  • Revolving credit limit includes credit at a retail store or on a credit card. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Discuss the implications of credit contracts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The dangers of borrowing on a regular basis are explored with reference to the debt spiral and an indication is given of when credit is a possible solution. 

    ASSESSMENT CRITERION 2 
    The benefits and costs of credit are compared to those of saving and purchasing for cash. 

    ASSESSMENT CRITERION 3 
    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 4 
    The legal responsibilities and rights of both the consumer and the supplier are explained with reference to common contracts. 

    ASSESSMENT CRITERION 5 
    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 
    Criteria for qualification for a first time home owner's grant or other government assistance are investigated and an indication is given of the amount needed as a deposit, the effect of the amount of the deposit on the monthly repayment and the percentage of salary/wage/remuneration allowed as a monthly deduction. 

    ASSESSMENT CRITERION 2 
    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. 

    ASSESSMENT CRITERION 3 
    Interest charged on a bond is investigated for three institutions that offer home loans and the monthly cost of a bond repayment is calculated for a selected property at the rates quoted by the three institutions. 

    ASSESSMENT CRITERION 4 
    The hidden costs in buying a home are investigated with reference to legal and relocation costs. 

    ASSESSMENT CRITERION 5 
    The implications and consequences of missing a monthly payment are explained for one month, several consecutive months and an extended period. 

    ASSESSMENT CRITERION 6 
    The impact that an increase or decrease in interest rate would have on a bond repayment is calculated for three different rates. 

    ASSESSMENT CRITERION 7 
    The impact that an increase or decrease in monthly repayment and the timing of each payment are investigated in terms of reducing the bond amount. 

    ASSESSMENT CRITERION 8 
    Ways of rescheduling debt on a home loan are investigated with reference to the consequences of non-payment and the effect on the final cost of the home. 

    ASSESSMENT CRITERION 9 
    The overall cost of a property at the current rate of interest is calculated over a period of 10, 20 and 25 years. 

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

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 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 is calculated and presented in a table. 

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

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

    ASSESSMENT CRITERION 4 
    The hidden finance 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 
    The concept of revolving credit is explained with examples. 

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

    ASSESSMENT CRITERION 3 
    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 
    The different ways in which an individual can finance a vehicle are named and an indication given of the implications of each method of payment. 

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

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

    ASSESSMENT CRITERION 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 
    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 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    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 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 ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 10715, "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
    Elective  20183   National Certificate: Banking  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2015-06-30  BANKSETA 
    Elective  49772   National Certificate: Archaeology  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  CATHSSETA 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  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.
     
    1. Nedbank Ltd 


    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.