Important Considerations Before Borrowing
Borrowing money can seem like a great idea when you need an injection of cash, but it’s a decision that shouldn’t be taken lightly. There are a number of factors to consider before you borrow so make sure you read our list below before you make a decision about your financial future.
Know Your Budget
Before borrowing money, it’s important that you know how you will pay it back. Consider all of your current sources of income and compare them with your usual outgoings. Study the repayment schedule for your loan and calculate how it will work with your financial situation.
If you know exactly when payments will be due, how much they will be and when the loan will be fully repaid you can make an informed plan for your finances.
What is at Risk?
If you are considering borrowing from another finance company, do you know what will be securing the loan you plan on taking out? Many loans require collateral for security and you could therefore be risking your assets or property if you have to default on a payment.
Make sure you know exactly what is at risk before you sign a loan agreement, or choose a loan that doesn’t require any collateral to guarantee the safety of your assets. All loans from Chequers Finance are unsecured, meaning your assets will always be safe from repossession.
Understand the Terms
A loan agreement usually involves a lot of terms and conditions to adhere to, making it difficult to fully understand your responsibilities. Make sure you know exactly what you are committing to and what fees are involved to avoid any nasty surprises. It’s also important to know what you should do if your situation changes and you can’t make a payment when you need to.
Choose a loan that you fully understand and avoid complex small print.
Do You Need a Loan Right Now?
Before you make the decision to borrow money, be sure that your situation really demands it. Consider whether the expense could wait or could be put off while you save up.
If you are making a purchase, make sure there are no cheaper alternatives before you proceed. If you need a loan for a true financial emergency, make sure you know exactly how much you need before borrowing to avoid having to take out further loans in the future.
What Type of Loan Do You Need?
Before increasing your credit card limit or calling your bank, take a moment to think about what type of borrowing would be best for you. If you need the cash as soon as possible then a short term loan could be the best option.
Can you afford to pay interest on your borrowing for a long time or would you prefer to have the debt repaid quickly?
Find out what fees and interest are involved in each method of borrowing and choose which is best suited to your financial situation.
If you would like to arrange a short term unsecured loan, call Chequers Finance now on 09 299 7883 or visit our website for more ways to get in touch.
Borrowing money can seem like a great idea when you need an injection of cash, but it’s a decision that shouldn’t be taken lightly.
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