Most people in South Africa have at some point in their lives applied for a loan of some sort. We know that it is difficult to get qualified for a loan if your credit is not up to standard, but it is even more difficult to pay the loan. It is of utmost importance that you know that late payments should not be an option. If you fail to repay the loan then you will be faced with numerous obstacles. In this article will I share some useful tips to help you to sustain the loan and to get you out of debt.
1) Budgeting: By having a proper budget strategy in place is one of the most effective ways to pay of your loan. One can resolve any debt related problem by implementing a strict budget plan. Budgeting is a lot like saving up for something in future, but the only difference is that you will allocate your monthly or weekly saving towards your debts. Plan your budget carefully and stick to the limitations which you have set for yourself. Your loans should be your main priority, after you have deducted your basic living expenses.
2) Try to have a bigger income: If you see that, even with a budget set in place, that you struggle to meet ends need, then I would strongly suggest that you look at other methods to get more money. You will be surprised to see how many ways there are to get more money. Think of ways to use your hobbies. Maybe if you are a musician, try to get some weekend gigs in order to get that extra cash flow to contribute towards your debts. Every extra rand which you can contribute towards your loan will help.
3) Pay more than the expected minimum: If you have spare money lying around, don’t hesitate to pay a bit more towards your loans. By paying more than the minimum will not only help you to pay of the loans faster, but it will also save you some money on the long term interests. It is also very important that you should first look at yourself, before looking at your loans. Only pay what you can. You will see that you will have to make some sacrifices in order to have more money at the end of each month.
If you have a bad credit score, then it's highly unlikely that you will get a loan. Get your credit score first and see where you can improve.
You have to know that debt can’t be solved over night, it is a long term process, so it is very important that you stay patient. You will see that your debt will be much easier to manage if you use these simple tips.