Such a thing as an honest micro lender?

[Dolby]

These last 6 months have hit me hard and I've got a solution - but my feeling is bank won't assist.

I'll be contacting Direct Axis tomorrow for assistance to see if they can'll help - but assuming they can't, I'm stuck with a micro lender (how big is micro anyhow?).
Are they all dodgy sharks - or is a company that I can approach that can actually assist ... ?

Much appreciated.

Thanks

[audiomuze]

None of them could give a FF about your situation - they're a business and their business model is offering short term funding at exorbitant interest rates to people who can least afford them.  They typically also employ freelance commissioned brokers who take as much as 20% of the loan amount up front in cash.  I would seriously consider options not involving additional funding, rather consolidate debt, downsize, sell off non-essentials etc.  It's a hell of a lot easier than trying to climb an insurmountable mountain of debt.

[Batman]

You're better of taking it from your home loan if you have one.

[Dolby]

Thanks for the replies.

By honest, I meant someone that wouldn't charge exorbitant rates and wouldn't have an issue with early payment if - for example - I took a longer term.

I'm guessing Direct Axis doesn't fall under the dodgy lenders though?

[Batman]

Short term is high risk therefore higher rates so if early payment you're just avoiding the compound interest which is to your benefit and they realise their returns quicker.

There is always an accredited body in every industry find out who they are accredited with if they are as they would have to follow their guidelines of good practice.

[audiomuze]

There's no microlender out there that won't charge exorbitant rates - they're "lenders of last resort", just one step ahead of unlicensed loan sharks operating outside of the law (insofar as there are any enforced laws in SA other than those that relate to revenue raising for the state coffirs).  No view on payment terms, penalty clauses etc. but I suspect there'll be a cost involved in early settlement.  Don't be fooled by a seemingly friendly corporate front - their business model is as stated above.

[placebo]

Thanks for the replies.

By honest, I meant someone that wouldn't charge exorbitant rates and wouldn't have an issue with early payment if - for example - I took a longer term.

I'm guessing Direct Axis doesn't fall under the dodgy lenders though?

Personally I wouldn't go near any micro-lender and I include Direct Axis in that category.I have received so many unsolicited sms's from Direct Axis which to my mind can only mean that there is something fishy about them.

[Batman]

They used to send letters to my postal address with dummy cheques saying this could be yours.

[placebo]

I cannot believe that any bank would not help out a client.It is in their interest to do so.However we do not know the extent of Dolby's problem.All I know is that a lot of money lenders used to use cops as their front and take your bank card.Not a personal experience but know it happens.I relate this experience to staff members under my control.

[audiomuze]

Let me put it in simple terms: going to a microlender and a brothel have one thing in common - either way, you're going to get screwed!

[Dolby]

Thanks for the advice.

I'm going to speak to a good friend of mine to see if he can help for a few days - I only need the money for less than a week.

The reason for the bank possibly not assisting is as follows - figures changed :

I earn R10,000.00 ... my credit card comes to R2,000.00 and the rent of my debit orders etc are R5,000.00 - giving me R3,000.00pm to live on comfortably. However in the last 6 months, massive unexpected expenses occurred which could be only absorbed by credit .... meaning that although my other expenses are still R5,000.00, my credit card is now R6,000.00pm - a shortfall of R1,000.00 every month

Had I been able to foresee these unexpended costs, I could have put them on budget on the credit card and simply stretch the payment over a large period to assist with cash flow. After stretching the payments, I'd be paying R3,000.00pm over a longer term instead of R6,000.00pm on straight - which I can't afford.

The plan was to get direct the friend/Direct Axxis/the bank to clear the credit card to R0.00 - and with it cleared, draw the available on budget (over a long period) and pay Direct Axis back. Explaining this to the bank would be difficult - as they'd see an income of R10,000.00 and expenses of R11,000.00 and decline me straight away.

If that all makes sense

[Hi-Phibian]

Make a phone call to the bank and try make an arrangement. They can actually move straight purchases on to budget facility after the fact. Furthermore they genuinely prefer a longer term arrangement that you can stick to and still get their interest rather then you defaulting on payment.

MAKE THIS THE FIRST THING YOU TRY.

[Shonver]

MAKE THIS THE FIRST THING YOU TRY.

But before that, ask the mods to remove your personal finance info off this public domain.

For 3 years my wife was a stay-home mum. I had to make full use of credit facilities to carry us through that period. One of the things I was forced to do was request the bank to reduce my bond repayments to minimum (just barely enough to cover monthly interest) for a few months to enable me to settle one of the personal loans. That freed up some cash, and I got a new job (a bit more money) in the meantime. My wife has a job now, and we are frantically trying to square the credit card, because harder times are coming.

Lessons I learnt:

1. Ask the bank for assistance. It's in their interest for you to remain financially solvent.
2. Settle your debts before things start going pear-shaped in the economy (we currently have the lowest interest rates in a long time).

Good luck.

[Daniel Weston]

Ditto on the advice. Go to the bank, find a manager with at least half a brain and discuss openly and honestly and I'm sure they will help you find a working solution.
Last option should be the loan sharks....
Keep chatting here- there are some clever chaps on the forum who can continue to help with the correct guidance.

[Hi-Phibian]

Ditto on the advice. Go to the bank, find a manager with at least half a brain and discuss openly and honestly and I'm sure they will help you find a working solution.
Last option should be the loan sharks....
Keep chatting here- there are some clever chaps on the forum who can continue to help with the correct guidance.

You can sort the credit card over the phone with most banks...