The National Credit Regulator has once again cautioned consumers who find themselves in the January cash crunch to borrow wisely.
The NCR's Lebogang Selibi says this time of the year many people find themselves needing money for expenses such as school uniforms, registration fees, stationery and transport.
She says as desperation sets in, some consumers may take out loans recklessly.
Selibi says the National Credit Regulator is advising consumers to borrow only from registered credit providers; borrow only when absolutely necessary, plan in advance how to repay the loans and most importantly - determine whether the repayments are affordable.
She says when borrowing, consumers should also ask for a pre-agreement statement from credit providers.
"Under the National Credit Act, it is your right as a consumer to be given a pre-agreement statement and quotation when seeking credit. These outline the terms and conditions of the proposed agreement and all costs involved such as interest, monthly service fees, once off initiation fees, credit insurance if there is any, a deposit if required, number of installments, date of first installment, and last installment " she said
Selibi further warns that consumers should never sign blank credit agreements as they won't have control over other information added afterwards.
