3 Benefits of Payday Loans in South Africa – What to Know

Dec 26, 2019

On average, a South African employee is slated to make about R13,964 every month, which essentially leads to a take-home of about R167,568 in a year. 

At first, it may seem like this monthly average is sufficient enough to live comfortably from month to month. Once you’ve factored in all your costs of living (water, electricity, house, food, and clothing, among others), however, you may probably end up having much lesser savings than expected, or in some cases, none at all. 

Given what it takes to live comfortably and exactly how much the average South African makes in a month, you can see that a regular stipend can be quite difficult to work with. On top of the struggles to meet the costs of living brought about by the average monthly salary, it is important to factor in the cost of having to settle various types of emergencies that may come up. In such circumstances, with not enough savings in the bank, you might find yourself in a tough situation. 

Common situations that call for payday loans 

South Africans, for the most part, often find themselves clueless and in dire need when they run into a certain emergency while still being quite a long way from their next payday. Should an emergency happen, below are three typical situations where a payday loan can you help out:

1. Struggling to pay rent

Because the costs of an average one-bedroom apartment in South Africa are equivalent to more than 40 per cent of the average paycheck, more people are struggling to make ends meet. Aside from being significantly costly, paying rent also comes with a few risks if you cannot pay on time, such as credit score drops and surcharges. Keep in mind that both situations can lead to a cycle of problems in the long run! 

If you’ve been struggling to pay rent while balancing it with your other essential costs for living, then it may be time to consider applying for a payday loan. Seeking a payday loan to settle your rent payment woes is a much wiser choice because you can easily avoid the long-term effects of poor credit. 

2. Running into a medical emergency

South Africa isn’t exactly known for affordable medical treatments as the average medical scan comes in at R3,800, while an MRI scan can cost R8,880. Unsurprisingly, both scans are equivalent to about 27% and 64% of the average paycheck, respectively! Navigating the challenges brought about by expensive medical costs can be quite difficult, but having a payday loan to give you the necessary support can make all the difference. 

3. Having to make emergency home repairs

Aside from high rental costs and expensive medical treatments, many South Africans struggle with their structural home damage that is brought about by extreme weather. From intense floods to destructive storms, such calamities can inflict a significant amount of damage on a home, which almost always results in another expense that needs to be sorted out right away. 

If these seemingly-minor damage issues aren’t fixed and paid for at the instant, they could possibly grow into bigger, costlier problems in the future. Fortunately, a quick and easy payday loan can help provide you with the necessary funding to start working on every emergency house repair without having to give up a chunk of your already-limited savings! 

Final words

Payday loans can help any South African in need of the utmost financial assistance to solve any emergencies that may come along their way. Given how limited the average South African’s spending power can be, a payday loan can definitely provide the help that you’ll need for a financial lift! 

If you are in South Africa and you need a payday loan, get in touch with us today! We’re happy to help.