Less personal loans taken after the recession

By Staff Writer

South Africa has come out of its first recession in a generation but the effects of the downturn are still showing. According to data released by the Reserve Bank less people are taking out personal loans as the after effects of the recession place a drag on peoples personal finances. The effects of a recession can last some time after it technically finishes and credit extension has slowed down. So what can you do to protect your personal finances?

 

 

As the ripples caused by the downturn spread out into the economy at large more and more folk are turning away from credit products with total loans and advances contracting by 1.05%. This shows that folks are worried about their money and less likely to get credit extended. If you plan a budget then you will be able to work out whether you can afford a personal loan or not. A personal loan is not always the solution, but can be, you just need to do your homework.

A personal loan should not be taken out to be spent on consumables but if it is taken out to pay off debt, make sure that the interest rate on the loan is less than the interest that you are already paying on your original debt. This way a loan can help you save money and to pay off your debt at a cheaper rate. If you take a loan you will be checked for affordability and a credit check will also be carried out, this is to ensure legal compliance, a loan is not free money but it can be used to save you money if done the right way.

Recent Articles

Featured Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save with 10X investments

Price: Free
When: Until 30 June
Where: Online

Sanlam Cumulus Investment Plan Limited Offer

Price: From R2,500
When: Limited Period
Where: Nationwide

Roman's Pizza Special-Single Large Pizza

Price: R69.90
When: Until 31 July
Where: Nationwide