If you have had trouble with debt in the past you may need financial help and direction while blacklisted.
If you have experienced difficulty in making your payments in the past. You will probably struggle to get any reputable financial service provider to approve any sort of loan. Or credit card or account for you.
Read More: Ways to Find Out if You’re Blacklisted
If your blacklisting has just been lifted. It is a good idea to learn how to manage your money and your financial situation in general. So that you do not find yourself in trouble with debt again or at all.
While you are blacklisted you may require a loan for some sort of emergency or essential situation.
Even if you are in financial trouble there are some financial service providers who will help you. But it is definitely something you should avoid if you can.
Financial Help for Blacklisted – What is the blacklist?
The blacklist is a list of red flagged individuals who have instances of non-payment against their names.
Registered financial service providers or credit providers do have the ability to put your name on this list. But only if you have not made a loan payment that you owe in full, on time or at all.
You will usually get a warning before they take this drastic step. But even if you do pay what you owe after a warning, your credit score will decrease. Reflecting the non-payment.
How do people get blacklisted?
As long as you have a steady job where you earn enough to cover just over your essential living costs you will qualify for credit.
People start building up their debt by taking on cell phone contracts and clothing store accounts. Or by getting credit cards and by opening accounts at grocery stores.
They might then, on top of all of these debts, apply for a personal loan. Most people get vehicle finance at some point in their lives. Then eventually, they will take out a home loan.
When all of these debts add up, it is not just the repayments you will have to worry about, it is also the interest.
While for some of these items you may have a fixed interest rate, many will have interest rates that may go up or down or that may compound.
This can turn a manageable situation into a very scary place to be indeed.
What can you do to avoid being blacklisted?
Stop spending money you don’t have on items you don’t need. If you have a credit card, only spend it on essential things.
Do not use your credit card as a ticket to a luxurious lifestyle that you cannot afford on your salary right now.
Also, if you do buy something on credit, make sure that paying all of your payments in full and on time is your top priority.
What can you do when you have been blacklisted?
You have three options if you have been blacklisted.
- Get into further debt by taking out loans from shady financial service providers.
- You can get the money together to pay for early release from the blacklist.
- Or simply live through your time on the blacklist. Then use the time to learn how to manage your money better.
Financial Help for Blacklisted People
There are many financial service providers who will assist you. That’s if you need financial help and direction while blacklisted.
You should however, be very careful not to go get involved with the wrong providers. As they might be loan shark agents.
Some of the financial service providers that you could try include Loan Finder South Africa and Zero Debt.