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December 2021
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What is a PAYDAY LOAN?11/2/2021 Payday loans unsecured short-term loans can be used to provide quick cash when you are in need of extra funds to make it through the month. These loans are usually paid off within a week or so. The repayment amount is then deducted from your bank account. THE COST OF a PAYDAY LOCANBecause payday advances have a low interest rate and are paid back within a few days, it's easy to think that a payday lender is not a risky option. Payday loans can be very expensive because they have higher fees and interest rates than most other types of loans. South Africa charges borrowers as high as 5% interest per calendar month. Although this might seem small, it can add up quickly. You could pay more than R400 for administration fees on a R2000-loan. "These loans have higher fees and interest rates than most other types of loans." High costs mean that a payday won’t help you solve cashflow problems, especially if your financial situation is already dire. You'll be in financial trouble if you take out another loan. Even worse, if your previous debit orders were in full before you applied for your payday loan, repayments can drain funds that you had saved up to pay another debit order. A bounced debit order could have a negative effect on your credit history. Future loans will be more costly because of this. I NEED MONEYA personal Loan is a better option than a payday loans if you are absolutely in need of money. Personal loans are flexible and can be tailored to individual borrower's needs. If you have a high credit score or an average credit score, a personal loans will likely be cheaper. Before you agree to a loan, you need to know the total cost. A responsible lender will also help you to score accurately and find the right loan for you. PREVENTION IS BETTER THEN CUREWhile it is best to not have to borrow for a short term, this is not the case. That means making sure you have enough money to cover any emergency expenses. That's not an easy task. South Africans are not likely to have any savings. But it is vital that you save for an emergency in the event of rainy days. If you do not want to find yourself in this situation, where there is little left at month's end to pay unexpected costs, you should revise your budget and start saving for an emergency fund.
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