Featured Story

RELATED ARTICLES
»   Pick n Pay joins Mobile Money
»   10 Ways to reduce your bank fees
»   FNB systems error results in double debits
»   Capitec not off the hook with regulator

Tips for borrowing smartly

With over-indebtedness stifling many consumers, it’s important to remember that you should always borrow wisely.

Debt review or debt management is an option for some – those who manage their credit properly can borrow freely, but they should still remain cautious.

If you are considering taking out a loan or a credit card, it’s important to keep the following handy tips in mind.

Borrow as little money as possible

Borrowing to fund your children’s education or a home loan can be a good thing, but borrowing for consumables such as to pay off other debt or to fund luxuries such as holidays or designer clothing can condemn you to a lifetime of debt.  Only borrow for what you really need. Plan the repayments before you apply for a credit card, clothing card, overdraft, personal loan or any form of credit. Also take into consideration the interest and other charges as well as how this will affect your ability to save. Avoid paying over too many months as it will cost you more in the end.

Credit insurance

If there is, familiarise yourself with the terms of the insurance to avoid surprises when you most need the insurance.

Be honest

Make sure that you honestly disclose all the information required by the credit provider. Dishonesty may cause you to lose the protection offered by the National Credit Act.

Create a monthly budget and stick to it

Work out how much income your family earns and what your total expenses are each month. Will you be able to pay for your new debt once you’ve covered all your expenses?  You should also plan for unexpected costs such as if one of your family members is retrenched.  Always keep receipts of your payments, as you might need these in the future.

Start saving consistently

Put aside at least 15% of your income every month in a safe investment. Save for your retirement as well.

Pay your debts on time

Paying late will adversely affect your credit rating and possibly your ability to take out credit in the future.  If you think you cannot meet your monthly instalments, call your credit provider immediately and try to re-arrange payments. Do not wait until you skip payments.

Prioritise your home loan

You don’t want to lose your home

Check your credit report regularly

This way you’ll be able to identify any errors and correct them.  Under the NCA a credit bureau must provide you with one free copy of your credit report each year from each of the eleven registered credit bureaus. Additional copies cost R20 excluding VAT each.  
 

 
Comments
mg htay aung says 15 July 2012
i want to borrow $10000. how can u help me. i really need for my family. i am living in myanmar. identity card number is 12/mabana(naing)098528 please i really need u contact me.my ph number. +95-9449002955
mg htay aung says 15 July 2012
i want to borrow $10000. how can u help me. i really need for my family. i am living in myanmar. identity card number is 12/mabana(naing)098528 please i really need u contact me.
BEVOK says 20 March 2012
IM OVERINDEBTED BUT NEED TO CEL MA HAOS END BUY NEW ANOTHER. IM I DEEP $HIT. pLS HELP
AungKyawZan says 14 February 2012
I want to borrow 1000 Dollar.But I am Myanmar. My Nrc No . 7/DaUNa(naing)119716. My Phone Number is+9501505691.Contact me
sazi dlamini says 24 January 2012
I read through this article ang I gained a lot I think community need this informaion in order to avoid overspending
lolita bradshaw says 17 January 2012
Where do I go to and who do I contact at the credit bureau to check my credit report?
POST A COMMENT

Name:


Write a comment: