Help with deciding whether or not to take out a loan

Getting into debt is not something that you should take lightly. It doesn’t matter what sort of debt it is. It might be something you buy using a store card or a credit card, or it could be taking out a loan. Whatever it is, you must first make sure that you can afford to make the payments or repayments, on time and without upsetting your personal financial stability.

You probably already have an idea of how much you need each month to get by on and pay the regular bills you get for things like electricity, water and rent. But, if you are thinking about taking out a loan, you need to verify how much you need and what this means in relation to your income. The best thing to do is to create a budget.

Creating a budget made simple

Creating a budget is not rocket science. It is only writing down what you spend your money on, couched in terms of a timeline. You can use any historical expenditure data you have. Once you’ve collated the data, then need to put it into a record on a forward spending forecast.

The more information you can include, and the further you can go back to collect it the better. It means that you are not likely to miss anything out. Try and put things into a chronological sequence; don’t forget to include any income you receive, and make sure that this goes in the right place timewise too.

If you do this correctly, what you will have created is actually a cash flow forecast, and this, in essence, is the same thing as a budget. If you’re not sure what you are doing, you’ll find plenty of help online from sources like the Capitec Bank budgeting tool and the Debt-busters budgeting tool.

Once you know exactly how much you need, to cover your essential costs, you can then think about getting a loan. You might, for example, need to get cash quickly to pay an unexpected bill or to streamline your finances and consolidate various debts (if you have them) by taking out one cheaper loan to pay them off. However, this is only wise if you have sufficient disposable income left over according to your budget.

How applying for a loan online works

There are lots of different options open to you when it comes to applying for a loan. Why not check out this helpful article entitled “How it works.”  It will tell you all you need to know about applying for a loan online.

If you need to get a loan quickly, applying online is the fastest way there is. It’s also very convenient because as long as you have a computer or a smartphone and access to the World Wide Web, it’s something you can do from the convenience of your own home. You can even do it on-the-hoof if your device is a mobile one.

The other piece of advice that is well worth taking on board is to only consider using a regulated loan provider. Some people get tempted to use unregulated sources. They often promise instant cash and require less security.

Only trust NCR approved loan providers

Beware of loan sharks. Firstly, there is no such thing as an instant loan. All bona-fide, regulated loan providers, will need a few hours to process your application. Secondly, these dodgy loan merchants often charge exorbitant interest rates, and if you fail to meet your payment date, they can turn very nasty, very quickly. It’s best to stick to a company that is NCR approved.

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