With continuing digital advancement in South Africa, it is now all too easy to apply for a short-term loan online, which is perhaps part of what makes them so tempting. However, if you do find yourself in need of money urgently, then the speed at which you can be accepted for a loan is extremely helpful.
The payday loan industry is still worth an incredible amount of money worldwide, and despite controversies, many companies continue to attract new customers in times of need. Wonga, for example, provide loans of up to R2500 for new customers and extend this further for existing customers who have proved they can handle their repayments.
The money is usually paid straight into your bank account, usually within 24 hours of your loan application being approved. However, your repayment, plus interest is usually taken straight from your bank account on the day it is due, which is why it is important to ensure that you will be able to afford the repayments when they are due without being left short for the following month. Otherwise you can find yourself in a cycle that is difficult, if not impossible to break.
Payday loan providers such as Wonga offer interesting solutions for those seeking an immediate stopgap when it comes to funds. Launched in 2007, British payday loans provider Wonga has developed a key focus on honesty and transparency, allowing it to foster credibility. The company has developed a new focus on middle-income earners who have often been overlooked in the past, and offers them a real solution to emergency situations.
As a responsible instalment loan provider, Wonga encourages responsible borrowing so that their customers do not get caught up in a vicious ‘payday cycle’. Instead, emergency loans are designed to help you out when you need money urgently. If you need an emergency loan, make sure you consider your options carefully and choose the best provider for your situation.
What to do if you are struggling to pay back your loan
If you find that you are unable to pay back your loan or if you’re struggling to do so, you should contact your lender as soon as possible. The longer you wait, the more your fees will increase.
Lenders are obliged to help you, so if you find yourself in financial difficulty you must be treated fairly. Your lender is obliged to help you come up with a plan to help you repay your debt, and any action they take against you must be proportionate to what you owe. However, this is still hardly an ideal situation, so always ensure you can afford any loan for which you apply.
If you still find yourself struggling, you can always speak to a free debt advice organisation that can help you. Avoid using commercial debt-management companies, as there is plenty of free and independent advice available to help you make an informed decision.