Getting a loan is a simple reality for most New Zealanders. Before you commit to one, there are a few things you need to consider.
Do you really need a loan?
Getting a loan should always be a last resort. If your finances are tight, you should consider saving up for the item instead.
For urgent advice on getting a loan, call MoneyTalks free to talk to a financial mentor. They can help you decide if getting a loan is right for you, and talk to you about alternatives.
Can you pay it back?
When you take out a loan, the finance company will assess your ability to pay back the loan, but these assessments aren’t always very accurate.
It’s important to know you can pay it back because when you miss a payment on your loan, the amount you owe can increase very quickly. You can be charged penalties for missing a payment, cancelling a direct debit payment, even a fee for making a manual payment, and more!
Read the fine print
A responsible lender will always provide you with all the information you need to make an informed decision. This will help you decide whether or not to get the loan, but just as importantly whether or not to get the loan from that particular lender.
While all money lenders are legally obliged to operate responsibly, many still take advantage of vulnerable people in desperate situations. Recognising which companies these are and avoiding them can be invaluable.
MoneyTalks can help you recognise these predatory practices, so that you can avoid them.
Getting a loan is reality for so many New Zealanders, and there is no shame in it. We all need a little help sometimes, and being brave enough to go looking for it is great. But like anything it’s always best to be well informed before you make your decision.
Talk with a financial mentor.
Phone: 0800 345 123
Live chat: www.moneytalks.co.nz
We are available to help Monday to Friday 8am to 8pm, and on Saturdays 10am to 2pm. We are here to help you.