Five Questions to Ask Before Getting a Personal Loan in South Africa

Aug 01, 2019

Anyone taking out a personal loan should have a good reason to do so. Perhaps your child needs to be rushed to the hospital, or one of your appliances got busted and needs immediate repair. Whatever your reason for considering a loan, it helps to think things over before taking the plunge. You don’t want to get buried under so many debts in the future that you’ll eventually end up selling your assets and filing for bankruptcy. 

It’s important to slow down and take some time to think before you get a personal loan. There are a few important questions you need to ask yourself. Let’s take a look.

Can you easily make the loan payments?

This is the first question you should ask yourself before taking out a loan. You may be eligible for a personal loan, but that doesn’t mean that you should automatically submit an application for one. Getting a personal loan means you need some money to do something important. It doesn’t make sense for you to borrow money if you aren’t sure that you will be able to settle your debts in the future. Sit down and evaluate your monthly income. See if you can keep up with the payment for your loan in your monthly expenses.

Do you have good credit?

Your credit report is a reflection of your financial situation. Do you have good credit? Chances are you have a negative credit standing that tells you that you need to come to terms with your finances. If you do, that means getting a personal loan isn’t a good idea. Besides, in most cases, you won’t qualify for a personal loan if you have a bad credit record. If your credit is good, however, then why not give it a go? 

Do you opt to consolidate high-interest debt?

Here’s another good reason to obtain a personal loan: you have a lot of high-interest debts that you can consolidate into one loan. How do you go about doing this? Get a personal loan and use that money to pay all your existing debts with higher interest rates. This is a great financial strategy. Not only will you reduce your numerous debts, but you can also save up quite a sum if you put all debts into one personal loan with one interest rate. 

Do you have important purchases that you haven’t saved for?

Perhaps you’re looking to take a personal loan because you need to make a significant purchase and invest in something necessary. Saving up for it in the next few months or years won’t be practical. The best way to proceed may be to get a personal loan right now. If you plan to do so, its best to shop around to ensure you get a personal loan with manageable payment terms.

Will the loan help you make more money?

Finally, obtaining a personal loan doesn’t necessarily mean you lack money. In some cases, some people are wise enough to get a loan in order to save up more money and grow it exponentially. Some even go as far as using the money to invest in business, skills, and experiences. The idea is to use money in order to generate more money in the future. This is a wise move for most people who are practical enough to play with their finances.

If you’re looking to take out a personal loan in South Africa, Hoopla Loans is your best option. Get in touch with us today to see how we can help.