Cash in a hurry 101

If you are facing a January spending crunch, you are not alone. On top of demands for school fees and last-minute uniform or stationery requirements, you might also have an unexpected cashflow hangover from unplanned festive season spending.

A recent survey of festive season spending by global accountancy firm Deloitte found that gifts represent only one third of the average holiday spend. In fact, the bulk of spending over this period is related to sprucing up your wardrobe and your home, entertaining at home and socialising outside the home.

“It is easy to underestimate how much these extras will add up to and play havoc with our New Year budgets,” says Richard Mukheibir, CEO of Cash Converters.

These seven strategies from Mukheibir will help rescue you from this situation:

1. Know your cash reserves: Can you still access any of the cash you received as a Christmas bonus? Do you have a rainy day account for emergency funds or other income due that you have forgotten about?
2. Work your salary: You might have discovered there is too much month for your money but at some businesses, such as Cash Converters stores, your salary slips can open the door to a payday advance without any other form of security. If you are permanently employed with a salary that is electronically deposited into your bank account, you can borrow an amount between R400 and R4 000 through a Sunny Day PayDay Advance mini-loan that is simply deducted from your bank account on your next payday.
3. What can you sell? If you do not have a regular salary, look around your home for items that you have fallen out of love with or perhaps never even loved in the first place. When you sell, staff at businesses such as Cash Converters will test that any item offered for sale is in working order and ask you for ID. Check and clean thoroughly any items you have decided to sell. The better their condition, the better the price they will fetch. Another plus that can add value is remembering to bring in the accessories that belong to the items you are selling, as well as the packaging in which they were sold if you kept it.
4. Consider taking a loan from yourself: This is essentially a form of cash advance that is secured against your goods and valuables – similar to a buy back. Choose this if you need to raise money fast but do not want to part forever with something you value. You will receive cash within 15 minutes against your belongings and any items you offer as security will be protected in a lock-up, waiting to be returned to you when you repay your loan within the month.
5. Be age-conscious: Some businesses insist that anyone selling or pawning with them must be at least 21 years old. However, Cash Converters will buy or advance cash against goods from anyone aged 18 or over with a valid identity document. This could be your passport, driving licence, barcoded ID or Smart ID card.
6. Be protected: Check that the business you choose to deal with for cash advance on your goods or a salary advance is registered with the National Credit Regulator. This will protect you against the sky-high interest rates often charged by unregistered lenders and also ensure that the short-term credit agreement that you are asked to sign is in line with the National Credit Act. Avoid an agreement that demands you leave your ID document as security or wants access to your bank card and PIN – these are sure signs of loanshark tactics.
7. Ready, steady, go: Selling goods, securing a cash advance against your valuables or taking a small loan against your salary should be a quick and straightforward process as long as you make sure you have the required documentation with you. At Cash Converters, for example, within 20 or 30 minutes, you can walk out with a Sunny Day 1 | 2 | 3 mini loan of up to R2 000 that you will repay in three monthly instalments. Your cash will be loaded on a Cashies Card that gives PIN protection, free point-of-sale swipes and one free cash withdrawal at any FNB ATM.  Be sure to arrive with the necessary documentation: ID (SA green bar-coded ID, Smart ID card, passport or driver’s licence); proof of residence; latest pay slip; last three months’ bank statements; contact details for yourself plus names and numbers of at least two alternative contacts.