Our Guide to Responsible Borrowing
Sometimes unforeseen circumstances arise where you need cash that you just don’t have. In these situations where you need a little help, taking out a loan may be the best option to bridge the gap and sort out your finances. Applying for a loan doesn’t just mean getting the money you need, it gives you an opportunity to catch up and relieves the stress of worrying about how to manage.
Deciding to take out a loan isn’t something you should rush into, so before you make the decision, be sure to consider the points below so you can be safe in the knowledge that you are borrowing responsibly.
Only Borrow What You Need
Before you rush into finding a loan, stop and ask yourself whether what you’re financing is a ‘want’ or a ‘need’. Will there be any negative implications if you don’t make the purchase straight away? Is this money truly necessary to keep your finances together right now, or could the spending be avoided?
If you’re sure that you really need some extra cash then be sure that you are spending as little as possible – if you need to pay a bill, does it have to be paid in full right now, or would a partial payment be ok? If you need to replace a broken appliance, could you get a better deal if you shop around?
Understand Your Obligations
It’s important that you don’t sign any documents until you’re sure you fully understand all the terms and conditions of your loan. Make sure you are aware of what is at risk and what will happen if you have to default on a payment.
Borrowing money is a serious responsibility, so choose a loan from a company that makes their interest rates and fees clear to you from the start.
Make Sure You Can Afford It
Make a list of all of your sources of income and all your expected outgoings for the next month, and make sure that there will be cash left over for your repayments. If these numbers don’t add up, then don’t take out a loan that you can’t afford as this will end up costing you more in the long run.
Plan Your Repayments
Once you’re sure you can afford the loan, make sure you know exactly how much your repayment instalments will be, and when they are due. Use this information to adjust your budget for the month so you don’t end up being caught short.
Choose the Right Loan
Loans come in many shapes and sizes, so consider all of your options before making an application. Short term loans can often work out cheaper in the long run as there is less time for interest to build up, so if you know you can pay it back quickly then there’s no point taking on the burden of a long-term loan.
Do you have assets you would like to use as security or would you prefer to minimise risk by choosing an unsecured loan? A loan secured using your car, for example, will generally be cheaper than a short term unsecured loan. However, your car may be repossessed at any time in the event you become unable to make the required payments.
Take time to consider your options and associated risks before rushing into anything. If you think a short term unsecured loan from Chequers Finance could be what you need then call us now on 09 299 7883 or visit our website for more ways to get in touch.
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