My Financial Help is a division of Pay Plan Solutions. Eugene Cilliers is a registered Debt Manager (registration number NCRDC1636) and serves of the National Executive Committee of the industry Representative body, DCASA.
In the same way you would evaluate an investment manager or financial advisor, before you invest your hard earned savings, so too you should evaluate all financial service providers. Here is a check list to help you with the questions you should be asking.
No legitimate financial institution will ask you for loan approval fees up front –
Fees are regulated in terms of the National Credit Act, and therefore cannot even be calculated until the loan amount has been approved.
If it sounds too good to be true, it probably is –
this is sound advice for many things in life, but also when it comes to borrowing money. There are many scam emails offering short term loans and business finance at interest rates lower than that of a home loan. No financial institution could offer that, and once again it is usually just a scam which requires paying “assessment fees” upfront.
Deal only with regulated service providers –
Like all participants in the investment market should be registered with the Financial Services Board so too the credit market is regulated by the National Credit Regulator, and all participants need to be registered with them, from Credit Bureaus to Credit Providers and Debt Counsellors.
Calculate the true cost of credit –
The process of restructuring debt must always be clearly calculated to determine the effects. A couple of easy ways to determine how much one pays over the period of a loan, is to multiply the instalment by the number of months. It really gives a great indication of what the true cost of credit is.