The demand for payday loan providers is extremely high in South Africa, and yet the idea itself remains controversial. However, extending credit to those in need opens up opportunities that the majority of South Africans have not had access to in the past.
Due to this, the need to re-examine flexible short-term loans has arisen – as has the need to look to our own spending habits. No one likes the idea of creating a budget, much less sticking to one. However, budgeting carefully is the key to making your cash last, and avoiding the pitfalls of payday loans which should only be used in emergencies.
Payday loans providers e.g.Wonga.com can offer a solution to the immediate need for quick emergency cash. After a careful re-examination of its workings, Wonga’s overhaul puts it at the centre of the revamping of the payday loan industry, where honesty and transparency are now priorities.
This new transparency has crossed over into online payday loan providers. Wonga is just one payday lender that has taken advantage of the new digital era in South Africa and is using their site platform to promote a more conscientious image.
Customers can apply for a loan easily through their online site, without any of the hassle associated with filling out long applications. Instead, they can find out immediately exactly how much they can borrow and how much it will cost by using the website’s easy sliders. Such a user-friendly interface makes it easy to see why such companies are only growing in popularity in South Africa as they shed their previously negative image.
Keeping your spending in check
With South Africa’s steady rise in the cost of living, it can be all too easy to overspend, putting you over your limit without even realising it. It’s easy to create a budget – but it’s a lot more difficult to create a budget you can stick with.
However, using a payday loan should be a short-term solution in an emergency, not something that becomes a regular occurrence. To avoid falling into debt, it is necessary to take an honest look at your finances and create a budget that works for you and your needs.
Figuring out your spending habits
Identify how you spend your money. Do you set aside money for necessary items each week or month, or do you only spend when you need something? Do you find yourself making a lot of impulse purchases?
Figuring out your spending habits is necessary to helping you create a realistic budget with goals that are in line with your current spending habits. Once you have done this, you can start to track your spending by using personal finance software – which can be of huge help if you’ve never tried to keep track of your spending before.
Such methods can help you avoid getting into debt and make it easier to pay off payday loans when you need to do so.
