A loan is something that can be of great assistance to anyone when in need of finances for whatever reason they may need it for. The economy has not been very friendly to a lot of people in South Africa and the 2008 recession was felt by almost everyone. Unfortunately a lot of people are still feeling the sting of the 2008 economic recession as some people lost their jobs and were not able to pay back all of their debt like they had planned to.
When you can’t pay back your debt you will receive harsh letters from your creditors demanding that you pay them back or else. If you find that you are not able to pay your debtors back on time and in full then it would be a good idea to consider debt counselling. Debt counselors will help you to manage your finances more effectively. By going down the advantageous route of debt counselling you will be under what is known as debt review.
Debt counselors do charge a fee for their services but it will definitely be money well spent. Many people have been assisted and had their names removed from the blacklist from the assistance of debt counselors. You could be under debt review and still in need of a little extra cash or a loan. What to do when in a situation like that? Well there are a lot of financial institutions that make it their number one priority to find loans for people who are under debt review. The companies that offer people loans who are under debt review have realized that people still struggle to meet their financial obligations even though they are going through the process of debt counselling. These companies have found ways to offer loans with people with bad credit.
There are two types of loans that you can get:
A secured loan is favored by the banks because it requires you to put up an asset as a form of collateral in order to secure the loan. This means that you will have to provide either your car or your house as a form of collateral so that the banks are secure in knowing that they have something of monetary value from you should you be unable to pay back the loan amount lent to you.
An unsecured loan is a loan that does not require you to provide any form of security as collateral such as a car or a house. A loan like this is very attractive but before you apply for one it is important that you know that it comes with higher interest rates.
A consolidation loan is a loan that pays off all of your debt and leaves you with one lump sum that you pay off every month. It is important that you pay your account on time each month and in full, failure to do so will affect your credit score negatively and land you in a worse situation than before so take advantage of the benefits that come with only having to pay back one account as a pose to many.
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