. Even if you do not have a bank account, if you do not pay your accounts regularly, your creditors will give you a poor credit rating. They will give that rating to any business that contacts them to find out whether you are a reliable customer or a poor risk.
. Once this happens, you will not be able to open any account anywhere or take out a bank loan (including a home loan).
It generally takes five years for your name to be removed from the list. Although you can negotiate to have this done earlier, it is a long and frustrating process, which requires great determination and patience.
In effect, a judgment against your name might affect your financial standing and your ability to get credit and to open accounts.
:
.
- You demand a written contract explaining the terms of the deal.
applies, and how long it is.
for the dealer or moneylender to complete afterwards.
than the contract states, if you want to. Check with the creditor to find out if there are special conditions governing early settlement.
. It is against the law.
of the contract.
A microloan is any loan under R10 000 from a bank or microlender that must be repaid within 36 months. Interest rates vary as the Usury Act only limits the amount of interest that can be charged on loans over R10 000. So shop around! Check what the rate is before you borrow money.
Many people have met their downfall through the vicious cycle of borrowing from a friend to settle an urgent debt ... and then borrowing from a microlender to pay the friend ... and then borrowing from a second microlender to pay the first microlender!