Short-term loans are just that – short-term. They are never supposed to be a long-term solution. However, every now and then we all experience monetary difficulties when disaster strikes – maybe the boiler breaks down or the car gives up, and you find yourself short on much-needed cash. If this is you, a short-term flexible loan could make a huge difference.
The South African government has taken several measures to avoid letting people fall into debt, including the National Credit Act (2005), which was intended to protect consumers and make credit and banking services more accessible. However, the rising cost of living in South Africa has not improved the situation for many.
Short-term loans, also known as payday loans, are ideal for an emergency, and should be considered if you need to cover unexpected costs until your next payday. It’s important to remember to avoid getting into a cycle of payday loans, and instead view them for what they are – emergency money for when you need it most.
Finding a short-term loan provider
Short-term loan providers come in many shapes and forms, and much of the industry is currently being re-evaluated and undergoing scrutiny to ensure that it can offer customers what they really need.
Launched in 2007, British payday loans provider Wonga has been one of the UK’s fastest growing companies. Under new guidelines, the company has developed a key focus and commitment to responsible lending. Its honesty on its charges and policies has allowed it to grow steadily, and develop a recognisable brand while fostering credibility with consumers.
It’s now easier than ever before to secure a short-term loan online in South Africa, and Wonga.co.za is one payday lender that has taken advantage of the country’s new technological advancements. Customers can use the site easily to find out exactly how much a loan is going to cost them and they can decide how much they want to borrow and for how long.
When to use a payday loan provider
Payday loans should only be considered when you need money urgently, and should never be viewed as a way to get you through the month. It’s important to remember that a short-term loan is not the same as using an authorised bank overdraft or a credit card.
If you find yourself in an emergency situation, then a short-term loan could be considered as a way to cover an unexpected bill or other immediate need. You could also use such a loan as a way to improve your credit score if you have bad credit by taking out a loan you know you can repay quickly.
It’s important to remember that you should never take out a loan that you may not be able to pay back on time, as you could soon be facing mounting fees.