Short term loans
Short term loans have a nasty habit of turning into a revolving door of debt. A lot of the time, people take out short term loans as a stop-gap to see them through the month, only to be locked into an unhealthy cycle.
Short term loans range from R1 to R8000 and have a repayment term of no more than 6 months, according to the National Credit Regulator (NCR).
The distorted perception consumers have of short term loans can largely be attributed to the brazen promotion and misleading advertisement of these quick-fix financial products. Consumers simply don’t comprehend the countless risks and pitfalls involved with taking out short term loans.
Moreover, they’re dangerously unaware that by dipping into the micro-lending pool, they are swimming in loan shark infested waters.
If traditional banks have rejected your applications you should consider this somewhat of a warning sign. Especially, if some online Slick Alek gives you the green light before you can say, ‘Well, that was easy’. More like, too easy.
Micro-lenders overlook affordability when granting short term loans. A credit check alone is not sufficient to determine whether or not a consumer can afford to repay a loan, without falling into arrears or being inhumanely robbed of their basic needs money.
The sad truth of the matter is that those who are least able to afford short term loans, pay the most to access them. People who perpetually struggle with cash flow tend to have poor credit records and, as such, are considered as high-risk to lenders and banks. And so, they are charged the highest rates and given the tightest deadlines for paying back short term loans.
Though marketed as convenient, small, simple and harmless, short term loans are anything but to the desperate, indebted, poor, financially illiterate and vulnerable. Basically, the majority of South Africans, who are living hand to mouth and from loan to loan.
Don’t fall into the same debt trap. NDA can help you get immediate financial relief and break the cycle. Send us your contact details for a phone call today.
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