Getting access to a loan as a blacklisted individual can be extremely frustrating. There are institutions that have endeavoured to make this process much simpler however. Other institutions strive to provide debt solutions which may help individuals to avoid becoming blacklisted. Old Mutual, First National Bank and Absa are examples of institutions that offer debt consolidation solutions that are designed to help individuals who are struggling with multiple debt repayments. This may be helpful towards prevention of blacklisting. Some institutions specialise in providing Blacklisted Loans.
Reasons for getting blacklisted:
There are a number of reasons that may lead to individuals becoming blacklisted. Some of them may be caused by ignorance and neglecting to remain prudent about finances. Others are caused by external factors that may leave individuals unable to repay their debts.
Making late payments for outstanding debts
This is one of the most common reasons for being blacklisted. If you are having trouble making repayments, it’s often wise to contact your creditors to arrange payment plans.
Not paying outstanding debts
Not paying debts at all and avoiding creditors is a certain way that can lead to blacklisting. For each payment you miss, this has an adverse effect on your credit rating.
Abuse of credit cards
Maxing out your credit cards will result in hefty interest rates to pay. If you can’t afford repayments on this facility, you are likely to be blacklisted
Taking on too much credit and not paying on time
Many people are guilty of this. Taking on credit from various stores for furniture, credit cards, personal loans etc can result in too much credit which can be difficult to maintain. If you are struggling to pay multiple creditors, debt consolidation is available as an option to assist.
How to avoid being blacklisted:
Pay all of your debts timeously
Pay all outstanding debts
Manage credit cards and avoid unnecessary expenditure
Avoid taking on too much debt