Thousands of families in South Africa find it difficult to make ends meet given that the prices of all products and services are rising
Are personal loans a solution?
They can be extremely useful tools but they should be used with care.
It should be pointed out that there are no special personal loans developed for families in South Africa. Either one of the spouses can apply for a traditional loan from a bank like Capitec, Absa or Standard bank or from a smaller lending company. Currently, there are only special student's loans, which can help families pay for the tertiary studies of their children.
If a family has to take out a loan, but they feel that they may have difficulties with repaying it, there are several options available to them. The spouses can turn to their respective employers and check whether they can get additional benefits or a pay raise.
Alternatively, they can check whether they are eligible for a grant from the South African Social Security Agency (SASSA).
There are several ways in which families can secure a cheaper loan. The spouses should look into their credit record and have any errors corrected. They should ensure that they have no outstanding debt either. Comparison shopping is the most productive and reliable method for securing an affordable credit product. Compare as many products as possible to identify the one with the lowest interest, total cost and fees.
If you need a larger loan, you may want to consider not only the traditional personal loans but also secured ones which involve the placing of collateral.