Types of stokvels vary in South Africa. With different rules and investments, different goals and ways of contributing, these community saving plans are somewhat popular in South Africa. With over 800 000 stokvel groups currently registered in the country, this is clearly a good way to save if done right.
- Contribution Stokvels
Arguably the most common type of stokvel, this is a situation where contributors put in a fixed amount monthly or weekly and the lumps sum is paid out rotationally to members. The money can be used for whatever the individual sees fit.
- Basic Stokvels
This differs from the contribution scheme in that the stokvel functions as a saving scheme, only paying out for specific circumstances – i.e. death, Christmas, medical bills, etc.
- Grocery Stokvels
Contributors collect grocery or cash coupons when buying provisions for the stokvel parties throughout the year. These are then distributed at the end of the saving period.
- Purchasing Stokvels
These are used to purchase money generating assets that can be rented out at the benefit of the contributors, either through use or payment for use.
- Family Stokvels
The money is invested in a formal bank account or financial service. Payouts occur according to the needs of the family, but are usually put towards a car or buying land, sometimes even loan deposits.
- Investment Group
Money is pooled and invested, the payout from the investment is then divided between the contributors with a small amount being kept for reinvestment.
- Party Stokvels
Pooled money is used to host an event or party which charges money for entrance, etc. The profits are then split evenly to contributors. These types of stokvels have often grown into formal business entities.
With so many types of stokvels available, find out as much as you can. Whether recovering from debt, or trying to budget for the future, contact Quick Consolidation Loans to find out more.
We will be able to offer advice on the suitability of debt consolidation to your specific financial situation, as there are instances where it would prove unsuitable. Our consultants will be able to help you with regards to secured and unsecured debt consolidation, and advice as to which would be most favorable to your outstanding debts. Operating on a national basis, we can also provide you with debt counseling or a debt review in South Africa. As mentioned, debt consolidation could save you on monthly payments and interest rates, which has made it a viable option for many. To find out if debt consolidation in South Africa is an option for you, contact Quick Consolidation Loans today.