While the temptation is there, experts sound a warning over taking personal loans ahead of Black Friday 2024. As The South African reported earlier this week, Black Friday 2024 falls on payday – Friday 29 November 2024. And if employers don’t agree to pay employees early, this presents a worrying temptation for many South Africans to engage with loan sharks …
PERSONAL LOANS ON BLACK FRIDAY 2024
According to DebtBusters, the organisation is concerned everyday South Africans will turn to personal loans to cover salary shortfalls on Black Friday 2024. Worse still, instead of spending money on good-value household necessities, the worry is many will use borrowed money to indulge in lavish purchases that draw the highest borrowing costs imaginable.
According to the debt experts, the average size of personal loans in South Africa has skyrocketed by 78% since 2016. Similarly, middle-class South Africans (defined as having an income of R35 000 pre month) have a debt-to-income ratio of 189%. What this effectively means is 66% of people’s income is going towards paying off debt. Usually asset-linked like a house, car and credit cards, etc …
DEBT COUNSELLING IS ALWAYS AN OPTION
The country’s economy is on a slow recovery under the leadership of the GNU. Compared to the darkness of 2022/2023, interest rates are cooling. But South Africans are still feeling financial stress, and bond and car repayments are still high. “Inflation and high cost of living are driving factors behind people borrowing and turning to personal loans to make ends meet,” explained DebtBusters’ Benay Sager. As a result, Sager has raised a warning over personal loans ahead of Black Friday 2024, and suggests restraint is needed.
The company offers debt counselling for those in need; a process the restructures high-priority debt to protect assets against repossession. Sager says, with their expertise, unsecured personal loans can be secured to within 90%, allowing clients to pay back their most expensive debt quickest. Over nearly a decade, DebtBusters has assisted South Africans pay back more the R450-million.
If you’re struggling financially, get in touch with them HERE to take advantage of their online debt-management tools in 2024.
WOULD YOU TAKE A LOAN AHEAD OF BLACK FRIDAY?
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