Almost everybody experiences a time wherein unexpected expenses happen. The car broke down, the dog got sick, the medical aid scheme doesn’t cover a particular medical procedure or an infected tooth needs to be pulled. No one can foresee these events, not to mention the expenses they bring. This is why a person should get personal loans or payday loans online.
At times like these, one has to have some money to iron out everything. And this money should come fast – even as fast as one can say “HOLD UP!” Most people don’t have any available dough to spare. Therefore they have no choice but to borrow money (from all possible sources) to defray the expenses brought by these mishaps. In South Africa, one of the sources of instant cash that most people turn to at difficult times is a personal loan.
A personal loan is a sum of money that one can borrow from a financial service provider. A person can use a personal loan to buy a car, purchase a house or renovate an apartment. Personal loans come in various types but not all of them are suitable for emergencies. Personal loans, in general, are not easy to acquire as it undergoes a process.
However, there is one type of personal loan that can be acquired in a jiffy and online – called ‘payday loans’. Payday loans online requirements is not that strict, thus, you can acquire for a payday loan online with no fuss. However, these loans are expensive.
How Payday Loans Work
A payday loan is a small type of loan but it is big on interest. The interest rate ranges from 30 to 80 percent. Increase may increase if you don’t pay the loan back within 2 to 4 weeks. Yes, it’s a complete torture but that’s the price of instant money.
On the brighter side of things though, for someone who really needs the money, this getting payday loans online is actually helpful. In addition, if the borrower would just pay the loaned money back on time, there wouldn’t be any financial problems that’ll arise.
Payday loans are available online but a person must apply for it and agree to it personally. There are quite a few financial institutions in South Africa that offer payday loans.
The information needed in this type of loan is minimal, requiring only one’s name, address, proof of current regular employment, credit card and salary slip. The borrower’s credit score is not that important; as long as the borrower pays the loan on time, then the game is good.
Word of Advice
Obtaining payday loans online are helpful in times of trouble, but because they are expensive, one must weigh the odds first before choosing to get one. The reason as to why one should get a payday loan online must entirely be valid. Otherwise, this loan is an open door leading to financial ruin, most especially for people who don’t have much control over their finances such as shopaholics and gamblers.
The two ways to avoid being swamped in the high interest rates of payday loans online is the following:
- explore other options (borrow money from a family member or a friend or take some money from savings) or;
- pay it as soon as possible
Loans are friendly, but if abused, they can be one’s greatest enemy.