At times, things can be tight. Money can be short. Bank accounts can be empty. Sometimes major unexpected things arise and you do not have the money to pay for these expenses. What options do you have then? Where do you get the money?
Debt is often painted in a very negative light due to the fact that is can become a mountain, trapping those underneath it. However, few focus on how debt has and continues to help people who need it. Responsible lending means that there is less chance of you being overwhelmed with debt. The National Credit Regulator (NCR) is continuously clamping down and prosecuting irresponsible and unregistered lenders.
But there is still a perceived risk and a large commitment when you take on a loan. You need to ensure you can afford to pay it back without crippling you financially. So what should you look out for, what should you know before getting short term loans online?
Here are 3 things to take note of before getting short term loans online:
Know What You Can Afford
Before you go to get the loan, you need to know what you can afford in terms of a monthly repayment. This will help you to work out how fast you can pay the loan back and how much money you can afford to borrow. Look at your budget and work out what you can afford.
Have a Timeline
Knowing when you will finishing paying off the debt is a vital part of paying it off. If you don’t know when you will finish paying off debt, you will be unable to properly budget and plan you financial life ahead. Make sure you read through your documents to understand the term of the loan and the date at which you will have finished paying it off.
It can often be tempting to spend more than we can afford because we have a credit line available. However, this has been shown to restrict and burden you financially in the future. Rather save credit for when you need it or for purchases that are worth while and add value to your life.
Don’t Apply Everywhere
Every time you apply for credit, the lender will check your credit profile through an enquiry. Too many enquiries can lead to a lower credit score. Rather read up before and apply to only one or two places to keep your credit score high.
Where can you get a loan?
If you need a loan fast and need cash in your account soon, there are two lenders who may be able to assist you. Both are responsible lenders and follow all the NCR regulations. You can read more about them using their links below: