Question: I have a take home net salary of R7500.00 and have a child but no wife yet. I need finance for a car but I'm blacklisted. I know I can afford an instalment of about R3500, but is there any bank that can assist me?

Answer:
If you are blacklisted, you cannot get credit until the blacklisting is removed, because you have a record of defaulting. In this situation, the best you can do is to ensure your debt has been paid back in full.

If you need to buy a car, you will have to save up and buy one for cash. This may mean that you will have to buy a less valuable car than the one you would like, and it would probably be secondhand. Don't think of a car as a status item. It's an object that depreciates in value.

When buying a second hand car, take someone who knows about cars and engines and ask for an AA report. Remember that you will also need to spend money on maintaining the car.

Be careful not to overstretch yourself. If your take-home pay is R7500, can you really afford to spend half of that on a car? If you really can spare the money, save it instead. Most South Africans are underfunded for their retirement (and believe me, it's not as far away as you think) and investing this money will go a long way to easing your future financial position.

You might also like to consider saving money towards your child's education, especially if you feel you already contribute enough to your retirement (at least 15 percent of your monthly salary).

Not being able to get credit can be a good thing, if you learn to pay cash for items, save up for what you really want, and learn to live within your means. Use this period to build up your position and make sure you have solid finances going forward.