Before deciding to get a short term cash loan, you should carefully consider why you need the money. Short term finance is inherently expensive when compared with other lending options available in the market. However, as these loans are for a short time period (typically one month), the actual cost in dollar terms is often less than if you went to your bank or other finance company and asked for a longer term loan. Its a bit like comparing travel by taxi or flying. Everyone understands that the cost per kilometre in a taxi is much higher than flying in a plane. However, a taxi is perfect for a short journey across town, it can be arranged with little formality & has the flexibility to take you directly to your destination. On the other hand, you would be foolish to travel the length of the country in one, as it would clearly cost too much. Our loans are like the taxi – good for “short journeys”, but not usually a smart choice for the “long haul”.
The point here is that its important for you understand why you need a short term cash loan. If you have an emergency (like an unexpected bill or repair) and find you do not have enough money in the bank to pay the bill, then a short term cash loan may be the answer. However, if you need to borrow a larger amount over a longer time period in order to make the payments more affordable, then you might be better off talking to your bank, credit union or another finance company that specialises in those types of loans.
It is also not a good idea to get a new short term cash loan in order to repay an existing one. If you are struggling to keep up with the repayments on an existing loan, a better solution is to talk to us about reducing your repayments to a more affordable amount. This way, you will have enough money left over to pay your other bills and expenses, and your credit record with us will remain good.
Short term cash loans, sometimes referred to as Payday Loans, are meant for occasional use only; not on a long term basis. If you find yourself resorting to short term finance on a regular basis, you should consider using alternative sources of finance, or seek budgeting help.
We recommend the following web sites for further information on budgeting:
Before you decide to borrow, either from us or any other finance organisation, you should always consider whether you can afford the repayments. You should calculate your total income from wages, social welfare, ACC, boarders, etc in a month. You should then total up all your regular expenses; food, rent, schooling costs, clothing, car repayments, repayments on other loans, etc. Its also a good idea to make an allowance for regular savings, so you can pay for those unexpected bills without having to get a loan at all! The difference between your total monthly income and total monthly expenses is what you have left over to repay a new loan; we call this your net income. If you do not have enough spare cash left over each month to make the repayments, then you can’t afford the loan and should not get it.
As responsible lenders, we ask to see your latest bank statements each time you come to us for a loan. This is so we (a) can be sure that you still have a regular income, and (b) can make an assessment of your current net income after all your regular expenses are taken care of. Its bad for us both if you end up over-committed and can’t afford your repayments, so we try to do our best to avoid this situation at the start. We will limit the amount you can borrow to ensure your loan is affordable.
If you need to use our service again, we will also look at your repayment history with us. If your previous loan(s) has been repaid without any problems, then this indicates that the repayments have been affordable for you and that your finances are under control. Subject to our lending criteria, we may be able to offer you a little more next time, although this is by no means guaranteed, and again each application will be assessed on a case by case basis. The reverse is also true; if your net income has dropped &/or we find that you have had trouble making your repayments on previous loans, then we may need to reduce the amount we can offer you. If your net income is too low, then we may not be able to offer you a loan at all, or at least until your situation changes (i.e. your income increases &/or your expenses reduce).
Visit us at any of our branches:
Chequers Finance Hamilton
137 Alexandra Street
Phone: 07 838 2939
Chequers Finance Henderson
334 Great North Road
Phone: 09 836 6201
Chequers Finance Papakura
155 Great South Road
Phone: 09 299 7883
Chequers Finance Otahuhu
13 Criterion Street
Ph: (09) 276 4384