Money Traps You Should Avoid
Posted by financial advisor on
The good news is that loans for blacklisted people are readily available in South Africa. The not so good news is that just like all other credit options these have to be chosen and managed effectively in order to avoid getting into debt.
If you have or have had debt problems, you should certainly use some advice on how to manage the loan that you are extended.
The most important thing is to compare loans for blacklisted from different lenders. That way, you will find the product with the most affordable interest, total cost and monthly instalment. You can now compare products online without having to leave your home so you would be a fool if you miss out on such an opportunity.
Avoid Money Traps
The other major trap to avoid is borrowing more money than you need. If borrowing more to repay your existing debt seems like a good idea, you should perform thorough analysis before going for this option. The new loan must have lower interest rate and lower total cost. The most important thing is for it to be perfectly affordable to you.
You cannot go without a plan for repaying the new credit that it extended to you. You should do some calculations to see what portion of your monthly budget you can set aside for repaying the new debt which you will incur. You have to ensure that the monthly instalment is no bigger.
Lenders are typically willing to extend the terms of loans for blacklisted. However, in this case, the debt amount will grow. That is why you should manage things to ensure timely repayment.