When an emergency financial situation arises it is always helpful to know your options. Cash loans are usually the first option that many people think about when they first start considering their options. Cash loans are rather easy to get which is one of the reasons why people will sign up for a cash loan. Not only is it simple to sign up for a cash loan, it is also the type of loan that is quickly available when you fill in that application form.

A quick introduction to cash loans

To start off this discussion it is good to say that you should only ever take out a loan if you are able to repay it. Reckless spending with borrowed money is the worst thing that you can do. We take out loans to pay for those things that we cannot afford but need to have. For example, if your car needs to be fixed and you don’t have the money to do it, taking out a loan might be your final option. But just because you are able to easily sign up for them doesn’t mean that you should be taking one out.

A cash loan is money that is loaned to you, and you are usually given a certain amount of time to make the loan repayment. Cash loans provide you with a certain amount of money over a short period and usually you will be required to pay the money back soon after you take out the loan. Cash loans can be taken to pay for all sorts of things and it is up to you to decide what it is that you need to pay for.


Deciding if you need a loan can depend a lot on whether you will be able to repay it. And since South Africans have far too much debt, we have been reminded yet again in the recent budget speech, before you start a lending spree consider this.

  • First assess your finances

It is the most basic first step towards finding out if taking out a cash loan is the right thing to do. Before you sign up for a loan have a look at your finances and at your savings. Do you have enough to get you through to the next pay day? Perhaps it turns out that leaving your savings is going to help you in the long term or alternatively perhaps you don’t have savings and have no choice but to take out a loan.

  • Friends and family

While you can ask your friends or family members for a loan to get you through the month, do you really want to lean on their generosity? And in these tough times, can they afford to give you a loan? The thing is, many of us will not think of asking friends or family for money because we don’t want to become a burden. If someone is able to assist you then make sure that you lay out the agreement correctly so that they know where they are going to stand with you and you with them.

  • Rethink how you are spending

Sometimes all you need to do is spend wisely in order to save your money. Before you take out a loan see where you can save money. This will help you to make the repayment of the loan when the time comes. Saving money will also help you to not have to take out a loan again in future. The idea is that taking out a loan should be a once off thing and not something that you spend on every month for your survival.

  • Know exactly how much you need to pay back

The loan amount is never the full amount that you will need to pay back. Loans come with very high interest rates and the more money you take out, the more interest you are going to have to juggle when it comes time to pay back the money. Once you know exactly how much you are going to have to pay back, you are going to know whether or not you should take out that cash loan.

  • Think about your credit score

While loans for people with bad credit is something that is available to those who don’t have the most pristine credit score, your credit score can have an effect on getting the loan. Not all companies give out loans for people with bad credit and occasionally you will come across a company that gives out loans, but gives out a minimal amount of money.

Whether you should or shouldn’t take out a cash loan will ultimately lie with you. But before you sign up for a loan, make sure that you have considered the points above. Taking out a loan is not something that you should do lightly. Budget Cash can assist you in getting the right type of cash loan and we also offer our clients consolidation loans, blacklisted loans and loans for people with bad credit.