Guest: Gerald Mwandiambira , Award winning CFP® Professional , Speaker and Author

TheTakeOff | #MoneyMonday | In a perfect world, we’d earn enough to cover all our expenses. But sometimes life happens. We wind up in debt ,abomashonisa/ loan sharks that offer no credit checks Or paperwork start to look like the perfect answer. It’s no secret that loan sharks target the most vulnerable but are they really that bad?Guest: Gerald Mwandiambira , Award winning CFP® Professional , Speakerand AuthorTwitter: @AskGeraldCFPA report from Wonga, found that non-registered credit lenders, or ‘loan sharks’ appear to be more widespread than previously thought, with as many as 40,000 operating in South Africa at a ratio of 1:100 for every household in informal settlements.The report found that the average value of a loan ranges from between R500 – R1,000, while interest on a loan ranges from between 30% – 50%. Very few loans exceed R5,000, the report found.The fact that the loan is structured so simply, is a draw-card for the use of mashonisas, Wonga said, as opposed to perceived hidden fees attached to legal financial services firms.