With SA’s economy adversely affected by Covid-19, many consumers may find themselves pressured and easily tempted by the promise of extra cash that comes quickly with little or no effort at all.
Remember the important saying: ‘If it’s too good to be true, it probably is!’
South Africans need to be sceptical of get-rich-quick schemes which, in the wake of a pandemic and the financial pressures thereof, have proliferated. Although many of us may opt to take out loans or credit to help manage our debts better, Absa Money Wellness coach Mapalo Makhu reminds us about good debt vs bad debt.
Good debt is money that you invest in something that will give you income and improve your net worth and livelihood. This would include things like paying for your studies or starting a business. Good debt will give you an asset that will appreciate in the future.
So, where should you go to get a loan? The answer is NEVER a loan shark. If you go to a mashonisa and the release is immediate, it becomes a cycle of stress because they can hold onto your ID and information.
It is always advisable to go to a licensed credit provider to find out about how much credit you qualify for, apply for debt counselling and have the opportunity to request a payment holiday should you really need one. Consumers must remain vigilant and cautious, so they don’t get scammed by dodgy moneylenders and less-than-scrupulous operators of get-rich-quick schemes.
Listen to the full interview now and join in the Absa Money Wellness conversation every Monday from 5pm on #TheBestDrive
Read more tips from Mapalo Makhu on the Absa Blog: If it looks too good to be true, it probably is
Written by: Y