Who finances blacklisted people is a relevant question in a society where finance is everything. People are getting blacklisted by companies in South Africa and having debt is often a huge amount of trouble.
Getting into debt is unfortunately incredibly easy. Because almost everything worth having costs more than most people can afford to pay in cash.
Most people end up opening account, applying for credit cards, overdrafts at the banks and taking out loans.
If you experience a financial bump in the road by losing your job or surprise payments, you may not be able to make a payment in full or on time.
This can mean finding yourself in financial trouble.
Financial service providers do not take kindly to missing payments. And they will take legal action against any individual who does not make their payments on time and in full.
Legal action like heavy penalties, seizure of assets and the process of blacklisting. These will befall those who do not keep up to date with their debt.
Those who have been blacklisted
People who have had trouble making their payments and who have been blacklisted in South Africa will not qualify for a loan. Or a credit card or account from any reputable financial service provider.
If an individual has proved that they cannot handle their own finances. And that they cannot pay back a loan or pay their accounts, they should not get themselves into more debt.
It is dangerous for the creditor and the individual and is a bad idea in general.
So who really finances blacklisted people?
There are, of course, some financial services who are not reputable and do not stick to a good moral and ethical code or even to the law itself.
They call these loan shark agencies and will charge high rates of interest (sometimes up to 1 000 percent) on loans.
Money lenders cannot afford repayments. There have been incidents of the loan shark agencies using violent and aggressive means to get their money back.
Of course some people, even though they have had problems with debt in the past, might find themselves in a position where they desperately need money for something or other.
Although it is dangerous for those who have been blacklisted to get themselves into more debt, sometimes it is unavoidable.
Reputable financial service providers in this country will always do a credit check on you.
They will always want to see proof of a steady, reliable income that will cover all of their essential living costs. As well as their monthly loan repayments.
If a financial services provider does not ask to see these things, it is likely that they are not one of the most reputable firms.
Another way to tell whether you can trust a financial service provider is if they promise very quick loans.
They will often offer ‘hassle free loans’ with little paperwork, no documents or background checks, and a cash loan in very little time.
However, this is a dangerous lure for those who are desperately in need of money as quickly as possible.
What should blacklisted people do instead of going to loan shark agencies?
Instead of getting loans from loan shark agencies who are not reputable. Or who will cost you a large amount of interest that you might never be able to pay back, it is a good idea to instead focus on improving your credit record.
There are many ways you can do this yourself. Within a few years you will be able to qualify for a good loan from a reputable financial service provider.
Although this is not a quick fix, you set up for years to come handling bad credit the right way.
It is possible to pay for early clearance from being blacklisted. Starting a new credit record.