Covid-19 Outbreak SA Online Resource | More info
Insurance, Car Insurance, Funeral Cover, Life Insurance, Budget Insurance, Insurance Quotes, CompareGuru, South Africa.
Car and Household
Business
Life and Funeral
Car Insurance
Cover your vehicle
More Information
Get Quote
Pre-Owned Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Extended Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Scratch and Dent
Cover small dents, chips and scratches to your vehicle
More Information
Get Quote
Tyre and Rim
Cover damages to your wheels
More Information
Get Quote
Home Insurance
Cover your home and everything in it
More Information
Get Quote
Commercial Vehicle Insurance
Protect vehicles and drivers used in the day-to-day operation of your business against risks like financial loss, damage or personal injury.
More Information
Get Quote
Commercial Insurance
Provide cover against common risks and disruptions to business operations, such as theft, damage to property, employee / client injury and much more.
More Information
Get Quote
Directors and Officers Liability
Safeguard your business and key players from financial loss with the right policy.
More Information
Get Quote
Errors and Omissions Liability
Covers your business and employees against claims of negligence, poor workmanship, and more.
More Information
Get Quote
Life Insurance
Provide for your loved ones
More Information
Get Quote
Disability Insurance
Protect your paycheck
More Information
Get Quote
Serious Illness Insurance
Cover yourself for illnesses like cancer, Alzheimers, Parkinsons, strokes or heart attacks.
More Information
Get Quote
Funeral Cover
Protect your family financially and cover funeral expenses
More Information
Get Quote
Domestic Worker Insurance
Cover the person that looks after you and your family everyday
More Information
Get Quote
Menu
Home
About Us
Domestic Worker Cover Quote
Life Insurance Quote
Car Insurance Quote
Funeral Insurance Quote
Extended Warranty Quote
Pre-Owned Warranty Quote
Scratch and Dent Quote
Tyre And Rim Quote
News Room
Meet The Team
Careers
Providers
Insurance
Car Insurance
Building Insurance
Household Contents Insurance
Life Insurance
Disability Insurance
Serious Illness Insurance
Domestic Worker Insurance
All Risk Insurance
Funeral Insurance
MotorVAPS Cover
Commercial Insurance
Commercial Vehicle Insurance
Directors and Officers Liability Insurance
Errors and Omissions Liability Insurance
Support
Contact Us
Terms of Service
Privacy Policy
Disclosures
Client Letter
POPI Act
PIA Act
CIM Policy
Complaint Escalation
TCF Form

News Room

3 Situations where a Personal Loan is a Good Idea

Melissa Cohen
2016-09-07
If push came to shove, is there ever a right time to apply for a personal loan? Here are three situations when a personal loan is a good idea.
If you search for ‘personal loan’ right now, Google will show you options from R5 000 to R200 000, that you can get with a “quick five-minute application,” for “cash in 24 hours.” And if you’re blacklisted? They won’t even do a credit check. Getting a personal loan is easy, and unlike loans that are earmarked for specific purposes, i.e. a bond to finance a home, motor finance to buy a car, or a student loan to pay for your studies while you get the qualifications you need to pay it back; a personal loan can be used for absolutely anything – as long as it’s a fairly responsible spend. And legal. personal_loans_article_banner But easy come, as they say, and easy go… Debt Rescue, a debt management firm introduced by the National Credit Act (NCA) to help over-indebted consumers, reported that, last year this time, South African consumer debt was at R1,63 trillion, with consumers owing as much as 75 percent of their monthly pay to creditors. And with the rising costs of living, that other 25 percent has a long way to go to the next pay day. The Association for Savings and Investments of South Africa (ASISA), has three tips for surviving tough financial times: become aware of what you’re spending daily; draw up a budget; and rid yourself of debt. With those clear instructions, is there ever a good reason for a personal loan? Personal loans can get you out of a fix, if you’re already in one, but cash is ultimately king. ASISA warns consumers that the biggest financial mistake you can make, especially during this time of interest rate hikes, is failing to acknowledge that you might be at risk of becoming over-indebted. With that in mind, we looked at three reasons to apply for a personal loan:
  1. Consolidate debt 
Debt-Consolidation If you’ve already bought into the buy-now-pay-later lifestyle and maxed a credit card or two, taking a personal loan to consolidate your debt repayments into one monthly repayment may be a good idea. Secure personal loan interest rates (where you put up collateral, i.e. your car) are generally lower than credit cards and retail accounts, so you’ll save on interest, and win in life. Secure personal loan interest rates (where you put up collateral, i.e. your car) are generally lower than credit cards and retail accounts, so you’ll save on interest, and win in life.
  1. Refinancing a student loan 
student_loan As most college and university graduates might confess, ‘adulting’ is hard… and expensive. Especially if you’ve tried to catch up to your parents’ standard of living in your first year out of school with a financed, brand new everything – forgetting of course, that toilet paper doesn’t pay for it itself. If you’re already overstretched, consider refinancing a student loan over a longer term with a more favourable interest rate on a personal loan. You may lose out on tax deductible benefits, but at least you won’t have to reach for the newspaper.
  1. Your wedding budget
budget-guru Ideally, this is something you should save for, preferably from the time you start thinking about it in primary school, but love happens unexpectedly. And how long can a wedding really wait? So draw up a budget for a responsible personal loan ahead of time for the expenses your savings (and your parents) won’t cover, instead of maxing your credit cards. Again. A word of caution to the husbands-to-be: personal loans are not meant for engagement rings. Side note, my husband didn’t know this. Second side note: He financed my ring with his loan to consolidate his other debt. Let’s just say we were in debt for the first two years of marriage. Save up. She loves you for you, anyway. That said, I’m keeping the ring. That said, I’m keeping the ring. Getting married or need to consolidate your debt? Click here to let us help!
CompareGuru Social TwitterCompareGuru Social FacebookCompareGuru Social LinkedIn

Sign up to our Newsletter now, and don’t miss a beat.

Email Address
Name
Sign Up