Getting weekly phone calls or text messages from salespeople peddling personal loans is almost a certainty these days. Even when you’re not interested, these people just don’t seem to take no for an answer.
South Africans are continually tempted and persuaded to take out personal loans via deceptive advertisements that prey on the desperate and gullible.
The problem is that many lenders don’t do proper affordability tests on consumers. Or they just don’t test them at all, to see if they can afford to repay the personal loans. These lenders simply run credit checks and don’t take the consumers’ living expenses into account.
South Africans are being duped into taking out personal loans they cannot afford to repay and, as a result, falling into debt. Then what happens is they take out new loans to pay off old ones, only to be ensnared in a debt trap.
Instead of taking out personal loans, you should rather set up a budget for yourself that takes your income, expenses and current debts into account. Or better yet, contact NDA for help with this.
Sticking closely to a realistic budget is the only way to ensure you won’t end up losing your assets. Or having deductions made from your salary every month via garnishee orders. Leaving you with barely any money to take care of yourself and your family.
Remember that emergencies are a harsh reality of life. You need to put savings away now, so you will be able to cover these when the time comes. But, if you’re in debt, you can’t even begin to save. The cost of living rises continually and so do the interest rates on personal loans. As a result, there is a good chance you won’t be able to afford your repayments in the future.
If are considering personal loans because you need immediate debt help, NDA can offer you safer, more rewarding debt solutions. Contact us today, we are waiting to hear from you!