Loans South Africa

Personal Loans

2011-06-08T11:09:00.001-07:00

Bad credit history can be embarrassing for you when you apply for personal loan but do not lose your heart and keep searching lenders or loan lending institutes. Yes, its true if you try hard you can find a lender providing you with Personal Loans with Bad Credit. Many lenders and lending companies are offering these loans to the people these days. The place to find Personal Loans with Bad Credit is internet. It’s very easy and time saving, not only this but also you can collect quotes form different lenders to find the best lender for you.

Different lenders and loan lending companies are available online catering to the needs of different people. Some want to place collateral against loan but some do not have, all these variations are handled by offering different programs for Personal Loans with Bad Credit. Internet is flooded with websites providing comprehensive knowledge of Personal Loans with Bad Credit. People who are avail these loans are in luck because along with money they get chance to improve their credit score.

Lenders and loan lending companies usually prefer the borrowers who are working. Along with job lenders and loan lending companies also want borrower to have a valid saving bank account, where they can transfer the amount which he or she has applied for. The application process for Personal Loans with Bad Credit is very simple and hassles free because lenders and loan lending companies have nothing to do with the credit score of the borrower, and therefore it takes very less time. Borrower must also take care that he or she is not borrowing more money because it is to be repaid. Personal Loans with Bad Credit are a solace for people who are in urgent need of money to get rid from their dejected life.

Car depreciation

2011-06-06T12:49:00.001-07:00

Whether you want to face it or not, when you buy a car, count on car depreciation, or a continual loss in value over the life of the car. With older used cars, the rate of depreciation is a lot less to you, because they have already lost most of their value. But with new cars, the sting is extremely heavy, in fact, when you first purchase a new car, you could stand to lose upwards of 20-25% just driving it off the lot. Why? Marketability.

Consider this – if you decided to sell the car immediately after you bought it, what kind of a price do you think you will get? Probably much lower than the dealer sold it to you. Ask yourself if you would pay retail for a car that was just recently bought by someone else, instead of going to the dealer directly. And if you wanted to sell it back to the dealer, well…they aren’t going to give you a price anywhere near what you paid for it. They want to make sure they make their money.

A good rule of thumb on car depreciation is to figure anywhere from 10-20% loss each year on the vehicle. Now, if you buy a car that is ten years old, most of the value has already depreciated, and it is nothing to worry about. If you spend $2,500 for a car, who cares if it is only worth $1,500 in the next 2-3 years. When I write posts like Should I Buy a New Car or a Used Car?, and the Ramifications of Making Payments on a Car, this is what I am referring to.

So here is the bottom line from my opinion. If you are considering buying a new car (many people do to get something that will have low maintenance costs for the first few years and be very reliable), plan on driving it for years. I’m talking 10 years or longer. The absolute worst thing you can do is to buy a new car, and sell it or trade it in during the first 2-3 years. You will almost definitely find yourself “upside down”, or in financial terms, with negative equity in the vehicle. My suggestion is to buy a used car that is 5-10 years old, and driving it into the ground. My last vehicle I purchased was a 1993 Acura Integra; it currently has around 160,000 miles and it still drives good. I plan to have it for another 5 years or more, hopefully. When buying an old car, just make sure you have your mechanic look it over thoroughly, because chances are high that it will need significant repairs when you buy it, and as long as you are prepared for the repairs, you can use the information to negotiate down the price of the vehicle. Two quick pieces of advice, don’t be afraid of repairs and make sure to buy foreign cars like Hondas and Toyotas. They just last a lot longer and have fewer maintenance problems.

One last thing, I found a car depreciation calculator if you are interested in seeing an estimation of what your car might be worth in the future. It isn’t as good as waiting until the time you are ready to sell and checking the blue book value, but it might be useful when you are considering purchasing that next car.

Money saving ideas

2011-06-06T12:46:00.000-07:00

Well I want to submit to you today, ten old fashioned, smart, family oriented, money saving ideas that can produce massive benefits to you down the road:

1.Can the junk food.

That’s right, I said it. One place you can really save on your grocery bill is to cut out all the snacks. Cookies, ice cream, chips, cokes, candy, etc. are completely unnecessary, and are very expensive. I am a sucker for chips and cokes, but we rarely ever buy them anymore. Now don’t get me wrong here, you ought to have a treat every once in a while, but certainly not every day, maybe not even once a week. The point is, cutting this junk food out, at least for the most part cutting it out, will save you an extreme amount of money each month.

2.Stop Eating Out.

Again, this is one that nobody wants to do. But just look at and total up the money you spent eating out last month. How much did you spend? $100, $200, $500, $1,000? What could you do with that extra money? Eating in is much healthier, and we have found through the grill and trying some recipes that a home cooked meal tends to taste as good or better than eating out. Again, I am not saying never eat out, but make it a once or twice a week thing, not every day.

3.Don’t go shopping.

Most people out there can’t go shopping without buying something. If you are one of those types that likes to go shopping but hates spending money, then go ahead. But most people just need to avoid the malls, outlet stores, etc., and stick to basic needs only. Ouch, did he really say stop going shopping? Yes, I did.

4.Cut out all the ridiculous entertainment.

You don’t need to go out to a movie every week. You don’t even need to rent one every week. You don’t need to golf every week. You don’t need to go to a water park every week. Focus on small dollar entertainment, like going for a walk, doing puzzles, watching videos on YouTube, and other free or very low cost types of entertainment.

5.Watch those miles.

Plan your trips. If you plan the trips you make every day, you will not make mistakes that will cost you additional miles on your car. Try to do banking and other business over the phone, mail, and internet wherever possible. If you can, get a job that allows you to work at home most days, using your computer and phone. There are many more out there than you think.

6.Sell that ridiculously high payment car.

Don’t every make payments on a car. Yes, I said it, don’t ever make payments on a car. Always buy a car for cash, and drive the wheels off of it. Stick with 5+ year old cars, that have already lost most of their value, and drive them to death. You will save so much money.

7.Go down to one car to a couple.

My wife and I only have one car. That means only one gas tank, only one insurance bill, only one yearly tax, only yearly registration, only one yearly inspection. Start to make sense? Cars are very, very expensive. Do without, wherever possible.

8.Switch electric providers.

I went with a seemingly cheap electric provider, but over the last year and a half, they have jacked my rate up about 30%. What do you do? Well, in deregulated areas, you go to the competition. That’s what I will be doing shortly.

9.Keep the AC on 80, the heat on 70, and don’t water the grass much.

Trust me, heating and air conditioning are the most damaging electrical costs that you have. Run fans during the summer, get a space heater for your room during the winter. With rising energy costs, you will definitely see the difference.

10.Make a savings goal, and keep yourself accountable.

Come up with a realistic number of dollars you can save every month (using the techniques above and anything else you can think of) and then have your spouse or best friend hold you accountable to it. Peer accountability is a fantastic motivation to keep to your goals. I have given you some simple, solid tips for saving money, but if you don’t do them, you won’t get anywhere. So get with a friend have them ask you once a week about how it is going. You will find you will do a lot better this way.

So there you have, the in your face, this is the real way to save money techniques. Nothing fancy, just solid advice to help you keep more of your hard earned money.

Dishonorable Check and Deposit Processing

2011-06-06T12:45:00.001-07:00

As long as you have high balances at the bank, no problem. As soon as you hit a snare though – watch out. Most banks are large chains with policies and rules, and they are totally unwilling to work with their customers. This normally results in excessive fees, which further your financial problems. I have even had one situation where the bank processed several checks on the same day, and a deposit, and the order of their processing was structured in such a way that they were able to justify charging an overdraft fee.

Situation 1 – Dishonourable Check and Deposit Processing

The situation outlined above actually happened to me. There were 3 checks that I had written, with quite varying amounts, that all hit the bank on the same day. I also had a deposit that processed on that same day. Now, the dates on the checks did not match up with the order they were processed in. I thought that banks would process checks in the order they were received, and if they were received at the same time, that they would process them in order by the date they were written. However, what I found was that the bank processed the checks in order from largest amount to smallest amount. Furthermore, they processed the checks before they processed the deposit. The net result for me was that I ran negative for part of the day, and then came back into the positive at the end of the day. What was my reward? You guessed it, an overdraft fee.

Of course I contacted the bank about the penalty, and luckily, this local bank was courteous enough to reverse the charge. Of course they had a lame excuse as to why they process the checks in the order they do, but at the end of the day the real reason is that they want more money, not to do the best thing for the customer. And I believe that this happens to a lot of people, so watch your accounts, and dispute issues like this.

Situation 2 – Hard Luck? Don’t Expect Any Sympathy from the Bank

Recently, I quit my job to pursue my dream of working in the ministry and running my own business. I had several streams of income flowing my way, but one online venture was really paying off. It helped me to get very near to the point of my first goal – providing enough income to meet my obligations. Well, we hit a snare on that particular piece of the business, and to this date, we have not recovered. So what does that mean for the bank accounts? Dropping balances, as I am sure you have guessed.

So as I am fighting hard to recover from the losses (which were about 40-50% of my income), I discovered one day that I had a “Account Analysis” fee of over $20 in my main business account. Since I have never paid any account fees with this bank, I called to inquire about the fee. I was able to get a hold of my banker, and he explained to me that the fee had always existed, but that my account had such high balances, that I was earning credits to offset those fees. And now that the balances had dropped, the fees started to show up.

Thankfully, I have a good relationship with my banker, and he reversed the fee, and told me he would not allow any fees to be charged to my account for the next 3 months. But here’s my thought – all that time that I had that money sitting in the account, I didn’t get paid one solitary cent of interest, so did my banker really do me a favour? The bank had 5 digits to loan out and make interest on, and didn’t pay me a cent all that time. So I don’t consider what he did for me here to be anything substantial. I am thankful he did it, but really…he should have.

So needless to say, if I do get hit with fees in the future, I will be moving my business to another bank. Bottom line, watch out guys, the banks WILL get you.

Debt Consolidation Loans for Blacklisted

2011-06-01T13:36:00.001-07:00

Choosing the right consolidation company is an important decision that you need to make during debt consolidation. There are both for-profit and non-profit debt consolidation companies operating in the market.

Debt consolidation in a non-profit way:

There are debt consolidation non profit firms that are certified by the IRS as charitable organizations that can help you in consolidating your debts. These companies have obtained 501(c)(3) charitable status from the IRS. Check the company’s ‘About us’ page to make sure that they are indeed a non profit organization.

How do they manage to work in non profit manner?

The word “non profit” may create an illusion in the mind of the customer. In this world where nothing comes for free, how can these companies survive as non profit? Well, the word non profit doesn’t necessarily mean that the service is free of cost rather it only means that there wouldn’t be any overall profit for the company at the end of the negotiation.

These debt consolidation non profit companies are normally funded by donation, and not a business cash advance, from the customers as well as creditors. Creditors would pay a percentage of the settled amount to the non profit organization for their services. Some companies may also charge nominal fees from the customer.

How would they help you?

The debt consolidation non profit companies don’t work very differently than the for-profit ones. You would be assigned to a case manager who would look into your debt situation and guide you accordingly.

You would then be presented with an agreement which would explain how your consolidation program would work and how much you would need to spend for it. Once you agree to the contract, the counselor would then negotiate with the creditors to lower your interest rates.

You are required to make monthly payments which then will be disbursed amongst your creditors to satisfy your debt obligation. The advantage of this program is that it will stop harassment from the creditors.

Anyway, even to do debt consolidation non profit way you must look at few companies before joining one since there can be many sham companies too. Hence, check out the past record as well the authenticity of the IRS certificate before joining their program.

Personal Loans

2011-06-01T13:30:00.001-07:00

A personal loan is what you borrow from a bank, or a building society or institution, or from any other lender as a lump sum of money. It would ideally be the best option if you are looking to consolidate all of your debts into one, so that you could reduce overall the amount of monthly repayments on the same.

Personal Loans Blacklisted

2011-06-01T13:26:00.000-07:00

Personal loans online can be found instantaneously. If you Google personal loans, thousands of sites will appear for your choice. It is in your best interest to research all of your options to get the maximum benefits of a loan. You want to be sure that the interest rates are not too high. Researching how each one works can be a value to your loan process. Be aware of scammers too. They are around and if you get caught up in their scam you could lose everything.

Applying for personals loans online is simple. If you have an internet connection at home, applications are available anytime. Simply go online, find the site of your choice and apply. Approval of your application may take longer if they are being reviewed by people. Some sites may have systems that can review your application and tell you if you have been approved. If you are a previous customer, you might be eligible to receive your money during off peak times, weekends and holidays. The money received from online lender can be deposited into your checking account within a reasonable time.

Personal loans online are in small amounts. The average maximum amount given is a R50 000 Loans. The maximum time you can request to pay back the loan is 60 months. It can unsecured. You do not supplying them with collateral for recovering if you cannot pay back the loan. Some loans are secured and collateral must be obtained. There is not a middle person involved in the approval of your loan.

If you are in need of a loan, browse the Internet for the type that fits your need. Every company does them a little different and offers can be different based on your loan application. Personal loans online help research the companies and their options without leaving your house. Taking the time to research will help you to get the most out of your loan. Save on gas and apply online for a Personal Loan

Debt Counselling

2011-06-01T13:20:00.001-07:00

Debt Counselling is a Government regulated service and is the solution for over-indebted consumers. Should you be unable to meet your monthly financial commitments under credit agreements on a monthly basis, you may formally apply to a Debt Counsellor for debt review. This process is fully backed by the National Credit Regulator and is in line with the National Credit Act. The debt review process is binding on your creditors and they cannot institute legal action against you during this period.

Finding the right Financial Service Provider

2011-06-01T13:19:00.001-07:00

Finding the right Financial Service Provider, broker or Debt counsellor can be a difficult task. There are numerous websites that all seem to offer sensible interest rates, top service and products to suit every consumer’s circumstance. So how do I choose?

That is a difficult question to answer.

With abundant Service Provider each offering many different products, finding the right one for you can tack time. Here is some key point to consider before you start your search.

Your credit record: Many companies’ only deals with clients that have built a healthy credit profile; Clients that pay all their commitments on time, every month. You may want to know the status of your credit profile. Knowing your credit score will certainly be valuable to you in your search for the right Financial Service Provider.

Secured loan or unsecured loan? If you need to borrow a small amount generally no security is needed. Unsecured loans are personal loans or micro loans up to R50 000 depending on your affordability and your credit record. Above R50 000 is commonly considered as secured loans; secured by a property or a surety.

What is the purpose of the loan? In general all Service Provider do not offer the same products, and all financial products available such as vehicle finance, asset finance, business finance, bridging finance, home loans, invoice discounting or factoring, even rent to own car finance for Blacklisted clients, just to name a few, demands different criteria. Knowing the purpose of the loan will narrow down your search tremendously.

Car Finance for Blacklisted

2011-06-01T13:15:00.001-07:00

If paying cash to buy a new car just isn’t in your realm of possibility, you’re either going to be leasing the car, or buying the car by financing it.

If you’re buying, then you’re probably financing it through the dealership, a bank, an online financial institute, or maybe even a family member.

Dealership:

When buying a car though a dealership all financing is arranged by the dealer. Be prepared for a big sales push on add-ons. The arranged finance is often front-loaded meaning the payments are made up of more interest in the beginning of the loan than toward the end. If you are planning on paying off the car loan early you may want to consider another option.

Bank:

When you ask your banker for finance you may get more competitive rates and no add-ons and the loans are usually simple interest loans (interest spread evenly throughout the term of the loan)

Online financial institution:

Applying online for bad credit car finance is simple and easy with competitive rates. Your online Vehicle Finance Broker often works together with more than one financial institution and will assist you in arranging the best deal for you. Be advised to never pay cash or upfront fees to any online broker, these broker normally gets a commission from the financial institution.

Home equity loan:

You car use the equity in your home loan to buy a car. Remember that the loan amount is now stretched out over a longer term period.

Debt Consolidation Loans

2011-03-03T03:32:00.001-08:00

Debt consolidation
A Debt consolidation Loan reduces your monthly payments so you can get a better handle on your credit. You can apply for a consolidation loan through any of a number of lending companies . Once your promissory note is signed, pay off your accounts and focus on one monthly payment.

Why a Debt Consolidation loan
With a debt consolidation loan you reduce your monthly payments through lower interest rates or longer terms. With smaller monthly payments, you pay off your bad credit loans, credit cards and existing loans with one easy monthly repayment.

You can lower your payments with two different ways. The first way is to extend the payment period with a loan. Depending on the type of loan, you can choose five years or longer to pay off your debt. The other way is to search for lower rates. That way you can make the same monthly payment, but be out of debt sooner.

How can I Consolidate my bad credit loans
You have a number of ways to finance debt consolidation. Secured loans offer the best rates. So cashing out your home equity by refinancing or taking a second bond on your property will give you the greatest advantage.

For those without property, taking out a personal loan or unsecured loan consolidation can still get you a great rate and reasonable monthly saving. The loan amount is obviously smaller, but if your outstanding debt does not add up to a huge amount, your application for a loan up to R25 000 if you have a bad credit profile, and up to R50 000 + if your accounts and monthly repayments are met every month and up to date.

It is also important to shop lenders before accepting a financing offer or any debt consolidation packages. Online financing quotes will help you find the best deal, saving you more on interest charges.

Debt Consolidation Products
When your monthly bills become too much for you to manage it makes sense to look for a method of dealing with the situation. Debt consolidation is the most popular amongst consumers that want a credit card debt consolidation loan, as it allows you to repay outstanding debts with out having to negotiate with the companies to whom you owe money. As a result of this you avoid being blacklisted or having your name sent through to the credit bureaus. Debt consolidation services have prearranged debt repayment plans with most credit card and collection companies. When you sign up with a debt consolidation company you are offered a lower overall monthly payment based on a lower interest rate that they have arranged with the creditor. This payment will generally be lower than the combined amount you would be repaying on all the smaller amounts you owe. One of the biggest advantages of a debt consolidation repayment plan is that as long as you meet the new, lower monthly repayments you will no longer be harassed by you creditors

That is what you need! One of the most favourable options for getting yourself out of bad debt is to go and speak to your local bank about a bad credit consolidation loans. Basically, debt consolidation loans are a type of loan that you obtain from the bank and use to pay off all your debts at once. So once you have used the debt consolidation loan to pay off your outstanding debt you now only have one single monthly payment to be concerned with instead of maybe 6-8 different account monthly payments that were stressing you out. You have consolidated all your debts into one.

This kind of loan solution allows you to borrow money over a long term therefore allowing you a monthly payment that you are far more comfortable with and can afford. In the long run you may end up paying a lot more interest but you will not have to pay charges on bounced checks, returned debit order payments or other penalty fees for not honouring your usual debt repayments. On top of that you will not have the pressure of the bank phoning you every single day or other financial institutes and debt collectors on your back. Also, providing you keep up with your payments on your unsecured debt consolidation loan you will steadily build up your credit record again which will likely result in the bank being willing to help you with more finance or debt relief should you require it in the near future.

car-finance

2011-03-03T03:27:00.001-08:00

If paying cash to buy a new car just isn't in your realm of possibility, you're either going to be leasing the car, or buying the car by financing it.

If you're buying, then you're probably financing it through the dealership, a bank, an online financial institute, or maybe even a family member.

Dealership:

Bank:

When you ask your banker for finance you may get more competitive rates and no add-ons and the loans are usually simple interest loans (interest spread evenly throughout the term of the loan)

Online financial institution:

Home equity loan:

You car use the equity in your home loan to buy a car. Remember that the loan amount is now stretched out over a longer term period.

Debt Counselling

2011-03-02T11:46:00.001-08:00

2011-03-02T11:01:00.000-08:00

2011-01-11T11:29:00.001-08:00

Improve your Credit Report

2009-04-22T10:16:00.000-07:00

How can I improve my credit report?

Pay your accounts on time every month
Pay the full instalment owed each month
If you are unable to make a payment due to unforeseen circumstances, talk to the company concerned and make alternative arrangements to pay back what you owe
Never buy on credit without knowing if you can afford the repayments
Try to keep credit repayments between 20% and 30% of your income. If you earn R5 000 per month, keep your credit obligations between R1 000 and R1 500 per month
Stay informed about your personal credit information. Obtain a copy of your credit report at least once a year
Never lie on an application for credit
Never ignore a letter of demand for payment. Make a phone call or write a letter to explain your situation
Never ignore a summons to court for non-payment. This could have a serious reflection on your credit report

Clean Up Your Credit Chaos

2009-04-22T10:04:00.000-07:00

Fixing your credit or understanding your credit status is by no means an easy or instantaneous venture. You can expect lots of paperwork, many phone calls, and confusing information. But if you're serious about building a strong financial base, it's well worth it.

Here are a few simple tips regarding your credit cards that you can start immediately to put you in good credit standing:

Enjoy the use and convenience of credit cards, but don’t have too many
Cancel credit cards that you are not using to avoid finance charges
Shop around for the best credit card deal
Always read the fine-print that comes with your credit card
Pay your balances on-time, each month
Don’t use your credit cards frivolously
Don’t spread debts or bills across too many different credit cards
Don’t apply for new credit cards to quickly

Contact financial advisors, credit bureau and consumer agencies to know your consumer rights
Credit Cards are an amazing credit tool and are a necessity for our modern lifestyles. Give credit to yourself by managing your credit cards wisely and avoid visiting the “plastic prison”.

Micro Loans and Personal Loans

2009-04-22T08:13:00.000-07:00

Looking for a personal loan or micro loan? Here’s how to choose the right one for you.

When applying for a personal or micro loan:

The interest rate you will pay will depend on your personal financial circumstances.
Compare the cost of loans by looking at the Total Amount Repayable as well as the Annual Percentage interest charged, including all monthly repayments, fees and charges. Generally speaking, the lower TAR, the better the deal.

Opt for a fixed interest rate rather than a variable one. This means that your monthly repayments stay fixed throughout the life of the loan, which not only helps with budgeting but also ensures you don’t get any unpleasant surprises.

Check out the penalties for early repayment. Around seven out of ten personal loans are paid off early, so look for a flexible loan that allows overpayments and watch out for loans that charge hefty fines for early settlement.

Don’t fall for loans with gimmicks such as repayment holidays and ‘buy now, pay later’ deals. Ultimately, you’ll pay for such ‘benefits’ so opt for a simple and straightforward loan instead. Complicated products are often more expensive.

One final point is that if you’re using a personal loan to consolidate various debts, don’t forget you will simply have switched your debts to a new lender. The total debt will still exist and it’ll only be paid off when you actually finish paying off the loan so don’t be fooled by the notion that you’ve ‘cleared’ your credit card!

Personal Loans

2009-04-22T07:18:00.000-07:00

Trouble with a Personal Loan?

The major financial institutions of South Africa are sometime reluctant to lend out money. We sometime forget that these institutions’ main income are generated by the interest we agree to pay when borrowing money from them.

This interest may seem like a huge amount but institutions are taking enormous risks on a daily basis, and will never be 100% certain that when lending out money, all plus the agreed interest will be returned. These institutions can however try and lower their risks by looking at the way you manage your money. Unfortunately if you have missed just one instalment or failed to meet your financial commitments in the past, you will be seen a high risk client.

There are smaller institutions that are willing to take a bigger risk, and will agree to lend out money to clients with poor credit, obviously at a higher interest because of the risk involved.

Tips for Loan Success

Be sure to make at least all of the monthly minimum payments to keep your accounts current.
Before signing a loan application, be sure that you are going to take up the loan. Many people apply to different lenders at the same time and then only take up the best offer. Every time you complete and submit an application form, the institution will check your credit record to see whether you qualify. These records of all your “applications”, whether the loan was taken up or not, will show on your profile and may affect your ability to get a loan.