Everything you need to know about borrowing.
Taking out a personal loan can be a tempting way to help pay off a big expense, allowing you to cover an amount realistic for your budget each month over an agreed period of time. But unlike home loans, personal loans are unsecured; in other words, they are not secured against any asset (for example, your house), so interest rates are generally higher than on a secured loan. So, if you’re not savvy, you could end up paying hefty fees and charges, borrowing more than you can afford, and even getting charged extra if you try to settle it early. Luckily COSMO is here to help with a guide to everything you need to know about personal loans.
1 SHOP AROUND
Make your own bank your first port of call when shopping around for a loan. After all, they know your financial history and how you manage money, so it’s likely they’ll offer you the most attractive interest rate (provided you’ve kept to the agreed terms for any existing financial product you have with them).
That’s not to say you shouldn’t check with other banks and financial institutions to see whether they can offer you a better deal. In addition to comparing interest rates, look for other charges, such as annual fees. Bheki Mpofu of Absa says you should consider the following before taking out a loan: how quickly you want to pay it off, how much of your loan you can afford to repay every month, and whether you need credit insurance. ‘This can cover you in case of unforeseen circumstances, such as retrenchment, that may render you unable to repay the loan,’ says Mpofu. ‘And shop around for affordable interest rates!’
2 CHECK THE SMALL PRINT
This story is from the August 2107 edition of Cosmopolitan - South Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2107 edition of Cosmopolitan - South Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Marc Buckner
The Bachelor SA Season 2’s star is here to make you swoon. Find out why boss babes are ready to risk it all for this adventurous dog lover.
I Tested Positive For The Alzheimer's Gene At 26 Years Old
A DNA testing kit is like a crystal ball, but what if you don’t like what you see?
Basically No-One Has A 28-Day Menstrual Cycle
Brought to you by: the idea of a ‘normal’ period is a lie
For Those Times When You're Like, ‘I Love You, But You're Annoying...'
Coupledom can be hard!
How To Get Sh*t Done
Calling all procrastinators: sometimes getting started on a new project or goal can be the hardest part. Here’s how to stop putting it off and actually press go
Is Rage Bait Okay?
It has become the new engagement strategy for many brands. Companies bait their followers into engaging with their content around topics that cause outrage. But is this okay? Social -media strategists Talya Goldberg and Jabulile Dlamini -Qwesha share their views.
Is Cardio A Scam? And 7 Other Not-stupid Questions About Fitness Things
Thanks for calling 0800 -WTF- Is -This
Hold The Phone
Zozibini Tunzi is here to remind you all to Take. Up. Space. She’s rewriting the pageantry rulebook, and she wants you to join in (in a bath, wearing sparkly boots, because that’s just how we roll).
How To Tell It Like It Is *And Finally Get A Promotion*
Receiving constructive criticism on your work can be terrifying. But do it right and it can be a career game-changer.
What Makes A Compulsive Liar?
We all do it. Tell those lit t le white lies to ourselves, and others. But what about those for whom lying is a way of life? Catriona Harvey-Jenner investigates the rise of a new kind of scammer.