Borrowing money does not have to be a bad thing. In fact, a loan can help you achieve financial freedom. The South African Reserve Bank reported in June 2019 that consumers’ finances were under pressure from a prolonged period of weak economic activity, rising unemployment, an increased tax burden and successive fuel price increases. Thus, cash-strapped South Africans have to find other ways to keep their heads above water and achieve their personal and financial goals.
Here are five ways a loan can help you:
- Improve your credit score: Paying your instalments on time will have a positive effect on your credit score. In addition, when you have a positive credit record you are more likely to qualify for better interest rates going forward.
- Pool your debt: Using a consolidation loan to pay off all your creditors and have only one repayment amount and date to think about going forward does bring financial relief.
- Afford a big purchase: When making a big purchase like buying a car, it is always good to investigate financing options as this is a big purchase and not always possible to pay the full amount upfront.
- Finance a big occasion: Unless you have been diligently saving and have an emergency fund to cover these types of costs, a personal loan may be just the right lifeline. We offer emergency loans at competitive interest rates to help you in case of an emergency.
- Pay for education: A lack of funds should not keep you from investing in your own studies as well as the education of your children. Use Iemas GradUcare Educational Loan to pay your own part-time studies or your children’s education.
The biggest secret to financial wellness is to manage your debt responsibly and ensure that you know exactly where your money is going and what your financial responsibilities are. Iemas Financial Services offers a range of loan options and financial wellness workshops to help you on your journey towards financial wellness. For more information call us on 0861 043 627.
More blog on Personal loans:
- What you need to know about personal loans
- What you can use a personal loan for
- What you need to know about being blacklisted
- How to manage your finances responsibly
- Five ways to stick to a savings plan
Source: https://www.iol.co.za/personal-finance/debt/opinion-borrowing-money-isnt-always-bad-34270659