Guiding consumers since 2009

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 New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria