When is it time for the Blacklisted loans option?
When you hear the word blacklisted, you might be imagining your worst nightmare. The idea of being blacklisted has probably already conjured up all sorts of negative connotations, some even linked to total financial ruin. You are probably, like many other South Africans, wrong in your perceptions of what it means to be blacklisted, just as you are possibly also wrong about what it means to have a blacklisted loan.
Wherever money and loaning is concerned, there are going to be those amongst us who end up on the other side of the loaning industry. And should you fall behind on payments, the vultures can start circling a lot faster than you are comfortable with. People who want their money will not back down and the last thing you want when you are facing financial issues is to also have to face down a law suit.
The term blacklisted and blacklisted loans are commonly used in South Africa. And to be blacklisted means that you have been listed at the credit bureau because you have been unable to make payments on your monthly debt. It can happen so easily, and it can happen to anyone. There is no shame in being blacklisted and what is even more important is that there are ways in which you can lift yourself out of debt and back into the clear. The one option used by many is the blacklisted loan. Before you go out and apply for a blacklisted loan here are a few things that you should know.
The Pros of Blacklisted Loans
You can pay off all your debt using just one loaned amount
Sometimes those who are blacklisted owe more than one loan amount that needs to be urgently paid back. Rather than struggling to pay back the amount of one loan at a time, many people choose the option of taking one grand loan and using that money to pay off everything at once. Why is this such a positive thing? Paying back everyone at once means fewer behind the scenes interest rates and other costs that are related to the amount you owe.
Blacklisted loans are usually available to those who have been blacklisted
The majority of loan companies and loan types are not designed to accommodate those who have been blacklisted. But those companies that make blacklisted loans available will make them available to those who have been blacklisted and have nowhere else to turn. Giving those who have been blacklisted that alternative option, that second chance, to pay off the debt that is weighing them down is a huge advantage.
Small amounts are loaned over a short period
Most of those companies who are making blacklisted loans available to those who need them are sure to only loan out responsible amounts. But it is also up to you to check that you will be able to repay the loan amount. For this reason small amounts of cash are loaned out over short periods of time. This is done to ensure that you do not fall back into the debt trap and feel the need to spend more than you can afford to spend. These loans are meant to be a short term, quick fix solution and it is up to you to spend responsibly once you have worked your way out of debt.
Low interest rates
To make blacklisted loans affordable and easy to pay back, these companies keep the interest rates low. Low interest rates make repayment much easier and this of course will help you to get out of a spiralling debt trap.
The Cons of having Blacklisted Loans
The biggest possible set back to applying for a blacklisted loan is that you are going to have to have a background check regarding your financial situation. Blacklisted loans are not automatically given out just because you are blacklisted. Blacklisted loan companies have to protect themselves as much as they want to protect you. Companies offering these loans can still turn down your loan application.
The blacklisted loan is not just there to help you get out of financial trouble, once you receive a blacklisted loan you can use it for pretty much anything you like. But spending responsibly is the one way in which you can always protect yourself from becoming blacklisted. The next time you swipe your card, carefully consider the repayment that you will need to make. Can you afford it?
At Budget Cash we offer our clients blacklisted loans. We know that becoming blacklisted is not always the fault of the person’s bad spending habits and that everyone deserves a helping hand in these tough financial times.