Many graduates who have a good credit profile often get carried away by the excitement of qualifying for a loan, while overlooking the risks of misusing it, which could potentially lead to financial mishaps.<\/p>\n
Lynette Kloppers, FNB Premier CEO, said taking the time to do your homework about different types of loans and how to use them effectively can help you avoid common mistakes that often leave consumers over-indebted:<\/p>
For example, if you are planning to buy a kitchen appliance that you will only use once or twice in a year, it would be more economical to save up for it rather than using credit and having to pay interest.<\/p>\n
Moreover, pre-funding your credit card with your salary and using it for all your daily purchases could be quite beneficial as it unlocks higher loyalty rewards and value added benefits. You also get access to a credit facility with up to 55 days interest free, to pay off, without incurring interest.<\/p>
Alternatively, taking out a long-term loan to supplement your monthly budget could potentially end up costing you more.<\/p>\n
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ALSO READ:<\/span><\/p>\n Common debit card misconceptions demystified<\/a><\/p>\n Be vigilant and avoid ATM and card fraud<\/a><\/p>\n Ask yourself these security questions<\/a><\/p>\n <\/p>\n Having this information upfront will help consumers to determine if they will be able to cope with the additional financial commitment, while still being able to put money away for emergencies or long-term needs on a monthly basis.<\/p>\n For example, many graduates who are eager to buy the car of their dreams often agree to a residual or balloon payment without really understanding what it means, only to realise they need to pay a lump sum at the end of the finance term.<\/p>\n \u201cGetting to grips with different types of loans and how to use them effectively in line with your personal financial plan at a very young age can help you build a solid financial future,\u201d said Kloppers.<\/p>\n <\/p>\n Have a story?<\/strong><\/p>\n Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za <\/a><\/strong>or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za<\/a>\u00a0<\/strong>or\u00a0Kgotsofalang Mashilo (journalist)\u00a0kgotsofalangm@caxton.co.za<\/strong><\/a><\/p>\n Remember to visit the Germiston City News on the following social media platforms:<\/p>\n Facebook<\/a><\/strong><\/p>\n Twitter<\/a><\/strong><\/p>\n Instagram<\/a><\/strong><\/p>\n YouTube\u00a0<\/a><\/strong><\/p>\n Or add the GCN on\u00a0<\/b><\/span>WhatsApp 079 406 1181<\/strong>\u00a0<\/span>or\u00a0BBM (BBM Pin: 7F102137)<\/strong>\u00a0<\/b><\/span>today, to get all the latest news.<\/p>\n Catch-up on more local news with our sister newspapers\u00a0<\/span>Bedfordview Edenvale News<\/a><\/strong>,\u00a0<\/span>Alberton Record<\/a><\/strong>\u00a0and\u00a0<\/span>Kempton Express<\/a><\/strong>.<\/p>\n\n
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