When unexpected things happen, getting a personal loan could be important to maintain your financial stability. You might be able to get back on track sooner rather than later if your credit score is strong and you make enough money to cover the loan installments. Yet, managing a personal loan can be difficult and have negative effects on your finances if money is tight.
Even yet, by looking into your possibilities, you may be able to secure a decent personal loan arrangement despite having a modest income. The payments might still be beyond your means, but if you are able to find a personal loan with favorable terms, the borrowing costs might be less expensive.
Here are some debt solutions you can consider for a low-income household:
- Debt consolidation: this is a form of debt refinancing that entails taking out one loan to pay off many others.
- Debt counselling: this is a process in terms of the National Credit Act, Act 34 of 2005, where a consumer who is over indebted (struggling to maintain monthly debt repayments) applies through a registered Debt Counsellor to assist him / her in reducing their monthly repayment amount.
- Debt review: Debt Review in terms of the NCA(National Credit Act) 34 of 2005 is a formal investigation into the financial position of the consumer, in order to determine whether the consumer is over in-debted and then to renegotiate the term of credit agreements by reducing the interest rate and investigating for reckless lending.
FDA’s debt review is tailor made depending on your income vs expenses and can protect you from being blacklisted by creditors, having your assets reposed, and garnishee orders.