Three forms of credit to bail you out in emergencies

When such emergencies occur, you often don’t have the money to remedy the situation immediately. This is where short-term credit can come in handy.

Credit cards

Having access to a credit card is a way of making sure you have emergency funds. Credit cards are relatively easy to get, but you will need to have an appropriate credit history and the ability to make the repayments from month to month. In some cases, you can get interest free credit which makes a credit card ideal if you can repay the debt within a short period of time.

Bank overdraft

It helps if you have an overdraft set up with the financial institution you usually do your banking with, in case you need an injection of cash extremely quickly. An overdraft is relatively easy to arrange, but depends on your general financial profile and earning profile. Luckily you usually have access to the money immediately with such a facility.  There can be monthly fees involved and the interest rates are often high, which is why they are not entirely suitable for long term funding or for using on a frequent basis.

Personal loans

There are a range of personal loans South Africa has on offer. Make sure to read the fine print at the various financial institutions, to find something with an interest rate that suits your repayment requirements. A personal loan is quick to sign up for, and depending on your eligibility, you could have the funds ready to use in just a few hours or a day.

For tips and advice on various loans and how to be smart with your money, visit Hippo.co.za, like them on Facebook or follow them on Twitter.