Quick Loans: Dos & Don'ts

The popularity of quick loans in South Africa is growing as more and more families find them to be a useful tool for managing their finances.

They are extended within a day or a couple of days at the most and do not involve a credit check on the borrower. You simply need to have sufficient income to repay your debt.

If you plan to use such a loan for the first time or have had issues with such products in the past, you should certainly check out this list of dos and don'ts.

Quick Cash -Dos

Compare quick loans from different lenders. This should take no more than an hour or so if you do it online. You should consider products from all kinds of lenders and not only major banks like Nedbank, Absa Bank and FNB.

Do check the interest rate and fees carefully. Initiation fees and monthly service fees are the most commonly charged ones. There are usually no application fees.

Do plan how to repay your debt given the terms and conditions set by the lender. You can readily reduce your monthly expenses to the possible minimum during the term of the loan. You can also consider debt consolidation at a later period. Just make sure that you will not get into debt.

Quick Cash -Don'ts

• Don't borrow more money than you need. This will just add to your financial burden.
• Don't pay the closing costs out of the loan. That way, you will pay interest on them too.
• Don't hide in case you cannot pay your monthly instalment. Talk to the lender right away and ask for an extension.

Now you can make the most out of quick loans.