Here are 5 tips to get out of debt faster with a payday loan.
Get A Payday Loan
Getting a payday loan in South Africa is very easy. With a regular loan, the lender will carry out certain checks. But with a payday loan provider, all you need is your paycheck and ID.
If you apply online for a payday loan, the process is much faster. Not only will you receive a fast decision but if approved, the funds are made available in your account, same day. With a payday loan, you don’t need a face to face meeting with the payday loan provider.
Fill the application with the correct information and the loan is finalized.
Cut Your Spending
Although you have received emergency cash loan in form of a payday loan to settle your debt, you are not out of the woods yet. You still have to repay the payday loan. Your paycheck can settle the payday loans but the problem is, you still have bills to settle.
They include utility bills, school fees, rent and more. If you do not cut your spending, you will end up in debt even after repaying the payday loan. To avoid this, cut your spending. For instance, instead of eating out, prepare home cooked meals.
Qualify For A Higher Amount
For those with many debts and are unable to settle with the limited amount offered to beginners, you can qualify for a higher payday loan. How? Pay off the first payday loan on time. Once you do so, your lender can increase the amount for subsequent applications.
For instance, if you borrowed R 15,000, you can qualify for R 20,000 on the next payday loan application. What you need to know is that the higher amount depends on the lending policy and your salary.
Stop Using Your Credit Cards
Many people get into debt because they max out their credit cards. The more they swipe, the more the balance and the more they find it hard to settle the debts. Once you get a payday loan and pay off all the balances, stop using your credit cards.
The only time you need to use your credit cards is in an emergency. For instance, if your car is out of petrol and you don’t have the cash, you can purchase enough to get you through the day.
Protect Your Credit Rating
A payday loan can protect your credit rating. As you already know, when you miss a few payments on your debts, creditors will impose penalties and fines. If you default, your credit rating will go lower. If this happens, it will be difficult to receive financing.
The good news is you can protect your credit rating by getting a payday loan. With the quick cash online, you can pay back your creditors and avoid defaulting.