Ask for more time first
Many of the bills that fall due before month-end can wait a week if you ask before the date. Landlords, schools and municipalities often agree to a short payment arrangement when you explain the date your salary arrives and pay part now. Put the arrangement in writing, even as a WhatsApp message, and keep to it.
The same applies to a debit order you cannot meet. Speaking to the creditor before it runs costs nothing; a failed debit order usually costs a bank fee and a penalty from the creditor, and a missed payment can be reported to the credit bureaus.
Options that cost nothing or very little
Some employers advance part of the month's salary and deduct it from the next pay, usually without interest. Ask payroll or your manager how it works before you need it. Members of a stokvel or savings club may be able to draw early or borrow from the group on terms the members agreed.
Family and friends are the other free option, and the riskiest for the relationship. Agree the amount and the date it comes back, and treat it as a debt like any other.
If you do borrow: what a small loan costs
A loan of up to R8 000 repaid within six months is short-term credit. Interest may be at most 5% a month on a first loan in a calendar year, plus an initiation fee and a monthly service fee with VAT. Over 30 days, interest, fees and VAT may total at most R283.41 on R500, R308.07 on R1 000 and R472.38 on R2 000. Our page on small loans compares registered lenders and explains what they ask for.
Borrow the gap, not a round number. If R700 covers the rent shortfall, a R2 000 loan costs more and leaves a bigger repayment for next month. You can work out the most any amount and term may cost with our loan cost calculator.
Make sure next month works
A loan repaid in one payment comes off your next salary, which then has to carry this month's gap as well as next month's costs. Before you accept, write down what will be left after the repayment and the fixed bills. If it will not stretch, a loan over two or three months, or no loan, is safer than borrowing again in four weeks.
If you find yourself short every month and using one loan to pay another, the problem is no longer the month-end. A debt counsellor registered with the National Credit Regulator can look at all your debts together and, where you are over-indebted, propose lower payments over a longer time.
Red flags
No registered lender asks for money before it pays out a loan, and none needs your bank card or PIN. The National Credit Regulator warns that upfront payments for a loan are unlawful. Be wary of anyone who promises a loan whatever your situation; a registered lender must check that you can afford the repayment first.