You can apply for a loan if you are blacklisted in South Africa today. Although the process and terms and conditions will be different to normal. Read on to find out about finance for people with bad credit in more detail.
There are many companies that provide finance to people who are blacklisted. Or have bad credit records. Because of being overwhelmed by debt.
It is important, however, that you first try to rectify your credit record and financial situation. Before getting yourself into more debt.
As you will undoubtedly be charged very high interest rates and you might find yourself in a worse situation than you are in now.
It is fairly simple to find yourself in debt in today’s fast paced consumer driven world. Store cards, credit cards, personal loan, car loans and home loans are all far too easy to get.
It is so tempting to live a lifestyle fueled by credit. Because it offers a world that so many people desire and yet so few can afford.
Once you begin to accumulate too much debt. And the interest rates begin to compound your debt, you will feel more and more pressure.
If you find yourself missing one payment or unable to pay a particular payment in full you will probably receive a warning.
A warning in the form of a letter from whichever creditor you owe.
Debt Counsellors instead of Finance for Blacklisted
Before you apply for a loan if you are blacklisted it may be wise to consult an expert.
You will then have a chance to see a debt counsellor and ask for assistance in managing your debt. They would probably advise that you either took one loan out to pay off all of your multiple debts. So that you only have one loan repayment with interest to worry about every month.
And if you stick to the debt counsellors plans. If you have closed your store accounts and live frugally for a while. You should be able to come out the other end with a slightly lower credit score.
However, if you let things get out of hand and do not seek help or advice from a debt counsellor or other financial professional, you will find yourself with a bad credit record.
Most reputable financial service providers will not approve loans for you. And you will be unlikely to be able to open store accounts, get a cell phone contract or a home loan.
There are of course, some companies that are willing to provide quick finance. But these companies are often loan shark agencies and should be treated with caution.
Finding fast finance for blacklisted people
If you still want to apply for a loan and are blacklisted but desperately require financial assistance. There are several companies that will help you. Some of these financial service providers include Think Money, Loan Depot, Just Loans and Dot Loans.
Rectifying your financial situation
If you can avoid taking out another loan. Or opening another account once you have already found yourself in trouble with debt. It is always a good idea to do so.
If you are already blacklisted. Or if you have a bad credit record, the companies that will assist you will usually charge you very high interest rates. Which you may not be able to pay.
You could find yourself in a much worse financial situation than before if you try to get credit before you are able to manage it. It is therefore better to focus on rectifying your debt situation.
The best thing to do if you are having trouble with your debt, is to contact a debt counsellor and discuss your options.
Your focus should be on fixing your situation by living frugally. Pay off any debts that you can and don’t apply for any more debt.
You should completely avoid opening or using store cards or credit cards and you should pay everything off immediately.
Try not to feel stressed if you have been blacklisted. There are many people in South Africa with bad credit records. So you are not alone in your financial situation.