Having the potential to obtain funds at any point is hugely advantageous as we never know when the unexpected may happen and we are left needing a service or purchase immediately. Some of us save for a rainy day and have managed to accrue some savings for those circumstances and others have not or maybe cannot. We need to have a home and many of us prefer to buy our own home, most of us need a car and prefer not to pay the total amount upfront, so loans can be extremely helpful and positive acquisitions which add to the quality of our lives. It is however essential that if you are planning to take out a loan that you make your payments as agreed as per the terms and conditions of your loan. What people sometimes do not realize is that when they default on a loan payment and continue to do this for several payments, the consequences can impact on their future borrowing potential as lenders are not willing to take a risk on those who have defaulted on previous loans. Your past financial dealings are kept on record.
Therefore a loan is a commitment and as such there are a number of responsibilities that you must take seriously
Do I Need a Loan?
Is this an essential purchase or service or is this just something that I would like to have or do? Try not to get too carried away with thoughts, dreams, and ideas, keep grounded. You may be able to save some more or you may be able to borrow from your family, friends or relatives but go cautiously here, money is one of the biggest reasons for family fall outs so make sure that you have an agreement with written terms if you do go down this path.
How Much Can I Afford?
It is all very well to sit and absorb yourself in thoughts of your dream car but have you really considered how much of an impact the monthly payments are going to make to your budget? The same goes for any loan for any purpose of course. You have to be completely realistic with what you can afford. Make a list of every outgoing, not just the essential ones but the non-essential ones too, being careful not to miss anything. Your dream car can very quickly end up a nightmare if you take on onerous payments that you just cannot sustain. This step is very important. It is also important to assess your circumstances, is your job a permanent, steady and secure job or is it subject to change in the near future? Is there a big wedding or family event that is likely to set you back financially or is there anything else that is likely to change your financial status? We can never determine the future but we can try to look at where we are going and what we are likely to be doing in the near future. Consider other loans that you may be and make sure that you don’t have too much borrowing at the one time.
Where Should I Get a Loan?
There will always be reputable lenders and there will always be the unscrupulous ones who are waiting in the wings ready to take advantage. There are two main types of loan, the first is a secured loan and the second, an unsecured loan. In the former, the lender will use something as security so for example, they will lend on a home or a car where they can attach the loan and should you fail in your payments, they will have the right to take your car or house from you. They could lend you money at a later stage and ask that you give them the title to your car for example. This type of loan is preferred by the lenders as they have more security and as such, they can often offer lower rates of borrowing compared with an unsecured loan where their decision to lend is based on credit history and your earnings. Interest rates, therefore, tend to be higher. So, decide on the type of loan you will need and then go about your search. You will always manage to find a reputable company in your area if you look hard enough. Ask around, use your social media friends as well and check online reviews. Interest rates are quoted as an annual percentage rate or APR, make sure that figure is reasonable and if you see an ad, check with the company to make sure that is the rate that they are prepared to offer you as sometimes the rate you are offered can be different from the advertised one due to your personal circumstances.
For New Zealand residents, QuickLoans offer a reputable and reliable service, you can check them out here https://www.quickloans.co.nz/. As with everything, there are pros and then there are the cons.
- QuickLoans only offer their loans to New Zealand residents who are over the age of 21 years. For those under the age of 21 years, there is the possibility of applying for the loan by asking a guarantor to sign with you. A guarantor is someone who will assume all of the payments for the loan should you default with any of your payments.
- They offer secured loans at some of the best interest rates on offer in New Zealand but are unable to offer loans to non-New Zealand residents. Secured loans mean that you have to have some kind of collateral to put forward as security for the loan.
- They are able to make very quick decisions, which is always helpful to the borrower, it saves waiting and wondering and if you need the money quickly, it allows you to move on to another lender.
- You would require to have a reasonable credit history, exceptions can be made and QuickLoans do try to accommodate as many borrowers as possible but they cannot accommodate anyone who is bankrupt or to anyone who has filed a ‘No Asset’ procedure.
- You will need to provide all of your personal details, your proof of residency, payslips, ID, etc and details of the security which you will be offering for the loan.
- QuickLoans have staff who can come to your home or place of business to have you sign the paperwork for the loan which saves you the time and effort to go to their office. There is also the possibility of being able to use a digital signature to complete the process.
- They offer clear, easy to understand terms and condition with no hidden clauses. Everything is explained to you in detail prior to signing and if you have any questions, you will have the opportunity to ask at any stage.
- If you choose to pay your loan back early, you can do that without any penalties.
- If your payments go well and all of the terms and conditions of your loan are met, you are able to apply for further borrowing.
- QuickLoans pride themselves in having an excellent and knowledgeable customer support team who are open during normal business hours. It is so important to have that backup, someone at the other end of the phone to answer any of your questions and to guide you with any problems that you may encounter.
- The application process is fast as it is all completed online which saves you a visit to the mall outlet.
- There is an easy to use calculator which allows you to enter your loan amount and the time over which you want to make payments. The calculator will work out the monthly payments that you will have to commit to. The calculator lets you play around and find the amount that you will be most comfortable with.
- The website is full of helpful information relating to the loans on offer and also provides advice and guidance on matters relating to borrowing. The website is clear and easy to navigate. All of the terms of the loans are clearly detailed including details of the interest rates on offer.
When you are considering borrowing money, always start by considering your circumstances and avoid unrealistic expectations of promotion or other windfalls which would allow you to take on a higher amount of loan. Stick with what you can easily afford, after all, you can add to the loan at a later stage if you find that your circumstances become more favourable. Look for a loan company who you can trust and whose terms and conditions are clearly laid out and understood. You want to be able to contact the company easily, so find out how you can do that and above all, if you take out a loan, do not default and if something does happen to interfere with your ability to make your payments make sure you make contact with your lender, very often something can be worked out at an early stage.