Cash loans and how easy it really is to get them
You must have received a few of those tempting messages on your phone. They entice you with easy cash loans offers and encourage you to sign up for amounts that will enable you to buy that dress or that car that you have been longing for. It does seem all too easy these days. Just give us a call. Just reply to this SMS. Just sign on the dotted line.
Each month South Africans are handing over massive amounts of their hard earned salaries to the creditors to whom they owe money. This increase in the number of people who are stuck in debt has resulted in more people having to apply for debt review and go into debt counselling, despite the passing of legislation designed to curb this type of behaviour.
- More than half of those who owe massive amounts of debts are between the ages of 31 and 45. Those in the debt rescue industry have noticed a spike among those who are under 25 and in need of debt review.
- Almost 57% of consumers with home loans are facing a tough time making the repayments.
- 58% of consumers with credit cards are experiencing difficulty paying off the outstanding money.
- Although most of the population has a bank account, around 38% of them have no idea what the interest rate is on their bank account.
- And just as so many people do not know what the interest rate is on their bank account, around 22% of people do not know what they are paying in banking fees each month.
- Around 76.58% of South Africans meet the end of the month with absolutely no money. Only 23.42% of South Africans have money left in their accounts come month end.
With statistics looking like this you might now be wondering; is it too easy to get a cash loan and if it wasn’t so easy, how would people live? Although we like to think that things are looking up financially, the reality is that 76% of those around you are struggling to get by each month and as a result they have turned to credit to help them out of their financial troubles.
Is getting debt to easy?
The simple answer would be yes, but that would be like painting everyone with the same brush. Some loan making companies are dedicated to giving out responsible loans while other loan making companies are all too happy to give everyone loans regardless of whether they will be able to pay the amount back.
Making debt is a two way street. The consumer needs to borrow responsibly while those giving the loan need to lend money to the right people, at the right rates. Offering cash loans out to everyone without doing the necessary checks is a recipe for disaster. And it is exactly because companies were doing that, that legislation was passed to regulate money loaned.
Despite government efforts and loaning companies being more responsible, of the 19 million people who use credit more than half of them have damaged credit records with payments being 3 months behind.
Often the issue lies with people not being educated enough about credit and loans before they apply for credit. They don’t read the fine lines and simply think that they will now be open to endless spending, thinking that they will worry about loan repayments at a much later date. But when the creditor wants their money, there is no wait. And soon people find that the money they owe is more than the money they earn, resulting in serious financial issues.
Responsible spending is enough to keep most people out in the clear, but that is not always possible when you come to the end of the month and you have no money. Sometimes taking out a cash loan is the only option to carry on surviving.
So while it might be too easy to get a cash loan, it is up to the consumers to make sure that they are taking out loans responsibly and that they only deal with companies that are authorised to give loans. At Budget Cash we take our job within the industry seriously. With each person screened thoroughly to ensure that they only loan money to those who will be able to pay it back, everybody is protected.