It is not difficult for consumers in South Africa to take out personal loans. Although big banks like FNB, Standard Bank and Absa Bank have very high criteria which borrowers have to meet, there are smaller lenders that are a lot more flexible and provide credit even to blacklisted individuals. The big question is how to manage the loan after you have taken it out. Here is some advice to help you with this.
It is a good idea for you to devote a small chunk of the personal loan towards its repayment. You can use it for the first payment or keep it aside so that you can use it in case of an emergency when you are unable to cover the monthly instalment. In any case, you will reduce the burden of debt a bit and lower your risk of default.
You should be very strict when it comes to the preparation of your monthly budget and its use.
Discipline is crucial when it comes to debt repayment.
You would want to pay all of your bills including your monthly instalment on time.
I can't repay my debt, now what ?
There are a number of solutions which you can use if you find yourself unable to repay your debt. Refinancing is the primary option. You can shop around for a more affordable loan which will help you repay your existing debt and lower your monthly instalments. You should remember to take into account all costs of refinancing. Generally, the new loan may be more expensive overall, but as long as it makes the monthly payments bearable it is a good choice. You can also ask your current lender for extension of you loan. The same considerations apply in this case too.
If you have difficulties managing your personal loan, you should not hesitate to turn to experts for individual advice.