Apr 13

Why Are People Applying For Micro Loans?

imagesWhat is the most common reason people in South Africa think they have no other option than apply for a Micro or Payday Loan?

You may be surprised it is for consumption; people are desperate to put food on the table and will do anything to provide for their family, they are even willing to put themselves further in debt.

It can become very difficult to break this cycle once started and can lead to a lot of stress.

Read more here  about this subject.

Feb 22

What Does Being Blacklisted Mean?

imagesWhen you are not paying your accounts regularly and on time you can be considered as a defaulter, making it very difficult for you to get credit again.

Luckily there are ways how you can become credit worthy after being blacklisted, however you will need to be very disciplined if you want to succeed in reaching this goal.

It is never too late to turn things around.

 

See what you can do here.

Feb 19

It Is Not Your Credit Card’s Fault

imagesSurely credit card debt is expensive and can land you in big financial trouble, but you only have yourself to blame if this happens.

Having a credit card to use in times of emergencies can be a very helpful tool. If you use your card responsible and not misusing it, it is very unlikely that you will fall in a debt trap that you can no longer handle..

Get some tips here on how to handle your credit card debt.

Feb 08

Never Ending Debt

imagesPerhaps you are feeling trapped and are extremely frustrated as it feels like you will never see the bottom of your debt, even if you are not skipping payments.
Did you know that a big part of that installment goes towards the repayment of the interest on the debt, or perhaps you are sometimes paying later than the due dates, this then will result in extra late payment interest added to your account and an even bigger portion of your payment?
You can learn more here on what to do about this.

Jan 15

Don’t Get Fooled By These Scams When Applying For a Personal Loan

indexThere is a very good saying “when something sounds too good to be true, it is too good to be true” and believe me that is true. Here are some tips on how to recognize some scrupulous financial lenders whose only interest is to scam you out of your money.

What to look out for

You are receiving an sms or email offering you a ”guaranteed loan” from R1,000 to R100000 or more with an annum interest rate of as low as 3 or 4% per annum with up to 6 years or more to repay.. Mostly this is a trick to make you fall for their lies.

All valid, registered financial service providers, their brokers and agents falls under the government laws and need to abide with the rules and regulations of the NCR as well.

Think about this: If they are legit how on earth can they themselves make money by charging 3 or 4% per year? Where does the money come from to pay their staff? It really does not make sense, does it?

Charging of upfront fees

Once again they are clever, they know they cannot charge you for just completing an application form so the charge you so called “legal or attorney fees” for drawing up the documents and contract. They now ask you to deposit the money into their banking account thereafter the money will be transferred into your account. They may tell you that amount will be refunded to you at the end of the contract when you made your last installment. In most cases these type of statements are just not true. Sometimes the even ask you to deposit a second amount as well
Know who you are dealing with

These scam companies usually do not excist at all, they mostly are a bunch of individuals getting rich by their schemes they pull on the innocent consumer. Make SURE who you are dealing with. These vultures are using the names of reputable companies they find on google and then use that name when they send out their sms or emails to the clients. Their documents they send to you looks very legit and professional.

Should you have a bad credit record and you get these kind of offers be very skeptical, with a not so good credit history you usually pay higher interest rate than the people who are not listed. Rather be safe than sorry.

Jan 13

How Being Blacklisted May Affect Your Credit

imagesHaving a bad credit score, regardless if it is for reasons behind your control or just past negligence it will affect your financial life negatively.

 

What will happen when you apply for a loan?

There are several financial lenders catering for the consumer with bad credit as well, however you should be aware of the following.

Higher interest rates: The potential lender will do a thorough analysis of your past credit history. If they see you can afford the loan they may grant you credit  BUT you will be paying a higher interest rate than the person with a good record? The reason – you are considered a high risk client and will first need to proof that you are rehabilitated and only then may become more lenient towards you regarding the amount granted to you as well as the repayment periods.

May not qualify for the amount you are looking for.

You may be offered a small loan only at first. It may be a good idea not turning down this offer,  by accepting the lower offer and then pay regular and on due date will make lenders see that you are trustworthy again, they then may be willing to assist you with the amount you really need after you made a few installments as you now have proven to them that you are determined to keep to your side of the deal.

Will a bad credit history have an influence on renting an apartment?

The answer is most definitely yes. Landlords will be very reluctant to rent a house or flat  to you as they may be afraid you will fall behind with the rent, or even just stop paying them totally.

As it is a very difficult and lengthy process for landlords to evict non-paying tenants in our country they will also check your rent paying history. Although you have to give permission for a credit check to be done on you it is different in the property field. They do have access to a program showing your previous rent paying habits.

No matter what kind of credit you are applying for, whether is for insurance, cell phone contract, store accounts or anything else, and you do not want to give consent for a credit check it will make the red lights flash to the lenders.
Providers assisting with loans for blacklisted people need to do a check to see what other accounts you have so they can see if you will be able to afford the new credit, they then will make a calculated decision based on your monthly commitments.

 

To apply for credit if needed you can click here.

Dec 14

Your Child Is Never Too Young To Start Learning The Value Of Money.

imagesIt is not easy to say no to our children when they ask us to buy them something and we do not have the money for  it, regardless if it is a small or big item.
What Should I do?
Start teaching your kids the value of money and the importance of saving even if they are still toddlers. They can do small little chores around the house and you than “pay” them for doing so. As soon as saved enough money they can buy that desired item out of their own money.  At the same time they must also learn not to expect to get paid for everything they do. They need to know the difference between getting paid for their “work” and their responsibility towards the household chores.
See how to teach your children about money here.

Dec 10

How to Get The Best Interest Rate on Your Loan

int ratesWhen applying for a personal loan the interest rate you will be charged is of utmost importance. Let’s have a look at what you can do to get the best deal.

Protecting Your Credit Score and Why It Is Important

The interest rate you will be charged depends on your own personal profile. Each individual‘s percentage can be different. Banks and other Financial Lenders make use of the various Credit Bureaus to see how you handle your finances. The higher your credit score is and the way you pay your accounts are vital factors for you when it comes to negotiating the best rate for yourselves.

What Can I Do To Make Sure I Have a Healthy Credit History?

Make sure you always pay your accounts on or before the due dates. Never skip any installment, but should you need to do so in an emergency case first discuss it with your creditors and inform them how you are planning to make up for that month’s installments. If you come to an arrangement stick to it, do not go back on your word. You will not be listed as long as you keep to your promise; by “putting your money where your mouth is” you can prove to your creditors you are a reliable person. This will also make it easier for you to get credit in the future as well. Also do not apply at more than one place at the same time. You can harm your credit rating tremendously, even if you do not go through with the applications. You may be seen as a high risk client.

Why?     Each and every time someone checks your credit history via the various bureaus your score drops considerably.

Do your homework before the time by finding out what the different lenders or other financial institutions have to offer. Do not just use the first one you find online, compare and make a calculated decision.

What If I Am Blacklisted?

Your changes to negotiate are not as good as these of the person with a good credit record, but you can still make the best choice for your individual needs. Do not take a loan without making sure you are applying from a legit company. Also try to avoid these lenders charging you large upfront fees for so called legal or contract documents that need to be drawn up. Some of them catch you with a promise that you will be refunded the fees again at the end of the loan term. In most cases people asking you this are trying to scam you out of your hard earned money. After all, why should you pay money upfront if you already need cash?

There are lots of legal financial house that are registered with the NCR that will be willing to give you a second change in life even if you had some problems in the past.

You can rebuild your credit by keeping to your commitments without fail. Prove to your creditor that you are trustworthy and you may be able to find much better offers when you are in need again. Paying regular and without fail will certainly improve your credit score as well.

Should you be in  need of financial assistance click here

Aug 05

Do Not Allow Debt to Rule Your Life

jane2Debt can ruin you financially and physically if it is not handled with care.
Prevention is always better than cure, but what if you are already caught in a debt trap? We will look at the before and after debt scenarios.

Scenario 1 – Before Debt

Jane just got a new job and is very excited. She immediately goes shopping and buys a lot of beautiful outfits as she wants to make a good impression on all her new colleagues. As Jane is short of cash she cannot really afford this big expense.

She raised her concern to the salesperson assisting her and got this reply, “no problem, we can open an account for you in minutes, all the outfits looks perfect on you”


Here Jane should have stopped and considered the following:

• Is it not better to rather get a few mix and match outfits that will cost me so much less and can look just as pretty when I wear it with some of the accessories I already have at home?

• What about my budget?, can I really afford this monthly debt if I take my other expenses in consideration like what it is going to cost me to travel to work etc.

Scenario 2 – After Debt

Jane could not resist the temptation to take all the outfits, she reasons that she is going to receive a good salary and convinces herself she will be able to keep up the monthly instalment.

Month end comes, she receives her salary slip and to her shock, she goes home with much less than she thought as she did not think about the uif, tax and other deductions that get deducted from her gross salary.

She regrets being impulsive when she sees that she is left with virtually no money after paying her account. After 3 months she starts to think of a way out. She got the “brilliant” idea to apply for a credit card; she can then pay her account and buy food and other necessities on the credit card.

Soon she maxed out her card and apply for another one, she maxed that out as well.

Now the vicious cycle starts:

Jane applied for a consolidation loan to settle her credit cards and other accounts. Temporary relief only, she may be saving a few bucks per month but is paying a much higher interest rate on the loan account.

Soon she needs extra money again as her car broke down and she had to pay for repairs, so back to the credit cards it is.

Now here expenses are even more than before and due to her reckless debt behaviour, she starts to skip instalments, resulting in her getting a poor credit record.

She decides to sell her car and travel to work using public transport as this is a cheaper way of travel.
It is good to save money by using public transport, but in Jane’s case she is not really saving as she had to pay most of the money she got for the car on debt and soon she is back to square one again.

By not having a good credit record any more, she now applies for a loan from lenders offering unsecured loans as the banks did not want to give her credit. The interest rates are much higher than that of a secure loan and she is indeed sinking deeper and deeper into debt.

Her worries about money is now starting to affect her health and work as she is always stressed and cannot be as productive at work as she should be due to being stressed all the time.
What to do now?

There is a way out for Jane.

• She can speak to her employer or her family and see if the can perhaps assist here with a no or low interest loan so she can pay all her debts. She then has to close all the accounts for good.

• If her work or family cannot help she can still get out of this situation but it will take longer.

• She can apply for a loan to settle some of her small accounts, but only if the instalment will be less than the combined instalment of these accounts.

• She now needs to pay this loan in full and then she can apply for another one to settle the next debt.

If Jane has the determination to carry on like this until all her debt is settled,and have the willpower not to open any other accounts again she can recover physically and financially living a stress free life again.

Aug 04

You Can Save Every Day!!!

Challenge yourself and see how much you can save on a daily basis by applying a few simple rules.

Use cash – Do Not Pay by Using Your Credit or Debit Cards

When you pay in cash for daily living expenses you will not easily buy extra luxury items as you will only be able to use the money in your purse. Leave all cards at home so you will not be tempted to use it.

Study and keep all till slips

Why should you do this?

You can be overcharged on some items or there can be duplicated items. Even worse, some stores allow you to draw money and it gets charged with your purchases.

You should check the slips to make sure there is no cash back transaction done that you are not aware of.
Keep all slips and check the totals weekly.

This way you will see what items were bought unnecessary and where you can perhaps cut down. You may think you bought nothing that was not needed and can be in for a surprise.

Do not feel for special discounts

These special discounts play with your sub conscious mind and you can indeed be spending more instead of less. In the food category it is still okay if it is items you are using on a regular basis, but not in clothing, make up and so forth.

For more saving tips click here.

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