Microlenders like wonga, definitely can help you when you need some urgent cash flow, but then again it is to easy to take a loan and you get into monthly habit of taking a loan. Yet your salary is actually going down every time you take a loan. I used them to get some cash flow (over 5 months) for paying of a new laptop and samsung galaxy note i baught threw the company i work at, to be more productive, yet i new i was losing money. My reasoning was that i know i am losing money, but with the right tools i will be more productive and earn the money back twice, as i am a entrepeneur always looking online and offline of ways making money. My cash flow is almost right again.
Eg. of how a monthly loan can get deteriarate:
Jan i take a loan for R750 i pay back a R1000 month end
Feb comes i am short some money so i am still short what i was last month, but an extra R250 as-well so i take another loan for a R1000 and pay back R1300 month end,
Mar comes and i take a loan again, what i was short last month, plus my interest on my loan, so total R1300. I pay back R1600 month end.
See where i'm going with this?
A micro loan will not sort out your money problems, it will make it worse. It is a temporary solution, which you should only use if
you have already formed a real solution to sort your money problems or if it is a once off thing.
Anyways, i hope i have a real solution, i believe i have and am woking on it every day, the light is near!
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