Cashloans - Way to Survive in South Africa.

More and more consumers in South Africa are applying for Cashloans to survive. Consumers borrow money to pay for basic day to day expenses.
By: www.fastloans4u.co.za
 
Oct. 31, 2012 - PRLog -- Recently, the National Credit Regulating announce an increase in unsecured loans. About 26% of South Africans are borrowing to buy food and to cover transport costs. With the steep increase in fuel price and electricity consumers are finding it difficult to meet basic monthly expenses. People are applying for Cashloans to pay for municipal services, to pay medical bills, to service and fix broken cars,to buy food and to pay for fuel or transport costs to and fro work. This is indeed a shocking state of affairs.

Why are more people in need of Cash loans?

The Nation Credit Act of 2005 changed the way credit was advanced to consumers. On the eve of the Act coming into operation, credit providers extended credit, to the maximum to consumer fearing a tighter regulation and restrictions by the New Act. This was done, not in the interest of the consumer but to ensure that credit providers continue to be in business beyond the coming into operation of the Act. More credit cards were given to consumers with extended credit limits, overdraft facilities we extended to consumers and so was the case with irresistible cash loan offers from credit providers. Consumers saw this credit advance as their cash and utilize it to the maximum.

The lending test was changed from what you earn to what you can afford to pay. Unfortunate, most of these cash loans were long terms loans or revolving credit. As a result most consumers were tied up to these cash loans. It takes one decipline and proper planning to get out of debt. A vicious circle was created and consumers find it difficult to get out of these cash loan debts. With increases in petrol price and the cost of electricity, more and more consumers are financial "pressed" to the extend that their salaries are not able to pay and to meet monthly expenses.

Cashloans are ultimately, the only way which consumers can use to survive until the next pay day. Paying for emergencies such as broken car, burst geyser, funeral costs and medical aid shortfalls, will surely make consumers to seek cash loans to meet these expenses. While one must plan properly, with the ultimate objective to getting out of debt, cash loans provide the much needed financial relief to consumers under the situation. For now, it seems cash loans are the only way to temporarily fix the problem. You can apply for an instant fast online cash loan at www.fastloans4u.co.za.

The increase in unsecured lending should be an eye-opener to all of us and more consumer education is needed to educate consumers about financial planning and discipline. Until such time,cashloans will always be seen as a "way out" by consumers.
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Source:www.fastloans4u.co.za
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Tags:Cashloans, Cash Loans, Cash Loans South Africa, Quick Cash Loans, Fast Cash Loans
Industry:Personal loans
Location:South Africa
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