Before taking on any debt, you should ask yourself whether you really understand the topic of debt, loans and credit. You should consider:
- Whether you are borrowing for the right reasons
- Whether you can afford to repay the loan
- Whether you have chosen the most appropriate form of borrowing
Reasons for borrowing
A recent ‘financial literacy’ survey of more than 18,000 customers of short-term lender Wonga South Africa showed that 83.7% of people would borrow to fund a house purchase, and that 58.6% would borrow to pay for the costs associated with going to university. 5% said they might borrow …