Under administration loans and offers for borrowing are available for people in South Africa although a bad idea.
You should always try to maintain a good credit record. Stick to your agreements and contracts when it comes to paying off your debt.
You need to do everything in your power to ensure that you do not find yourself in more debt.
Read More: Getting Help With Debt
However things go wrong and you have gone under administration for your overwhelming debt. So you should steer clear of getting yourself into further debt.
Under Administration Loans – getting overwhelmed by debt?
In today’s consumer driven society where instant gratification and advertising push us to buy. It’s easy to find ourselves struggling with debt.
It is very simple to get a loan with a range of different financial service providers, many of whom are not always reputable.
This means that they will allow individuals who are high risk to take out under administration loans and then enforce extortionate compounding interest rates that bankrupt the individual in a very short amount of time.
It is also far too easy to open a store account. Or get a credit card, get a cell phone contract or any other type of credit account.
All of these small accounts, combined with some of the larger ones (like home loans and vehicle financing) can add up to a mountain of debt. That most individuals will not be able to pay.
It is impossible to predict what your financial situation will be like even in the near future.
Under Administration Loans – How People Get in Debt
Most of us believe that we have a hold on our finances and that we know what is coming. But a large amount of people have found themselves jobless through a company closing down.
High medical bills can catch you by surprise. Or for example, vets bill or similar unexpected costs that you cannot afford. Meaning that you will be unable to pay their loan repayments.
Companies and financial service providers offer credit and allow individuals to take out loans and contracts. They are very serious about getting the money that is owed to them.
If you have signed a contract, you can be sure that the company or bank will hold you to that contract. Also that they will not be afraid to take legal action to get what is due to them.
This is why so many people are in over their heads and struggling badly.
More loans are a bad idea
If you have already reached the point where you are so far in over your head with your debt. Or you are under administration. It is definitely not a good idea to take out under administration loans. Even if you are desperately in need of money for something.
You should try to look for another option:
- Taking out more credit when you are in trouble already can only lead to more suffering.
- You might be blacklisted, you might lose your home and all of your assets.
- You may even have legal action taken against you.
- If you have a family with children, your children and spouse will suffer if you get yourself into even more trouble with debt.
What to focus on with your finances
In conclusion if you are desperately in need of money while you are under administration, steer clear of getting another loan. Approach a friend or family member for an interest free loan instead and work out a payment schedule.
It is necessary to only borrow what you can afford to pay back. And to make sure that you stick to your payments.