We all know that life throws many curve balls and there will come one time or another when a personal loan could come in handy. So if you’re having trouble deciding whether a personal loan is right for you, read on as we uncover the 5 top reasons to take out a personal loan in New Zealand:
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Debt Consolidation
Rolling over your varying credit card, store card and personal loan debt that is accruing high interest rates and fees, into one low interest rate debt consolidation loan could save you big bucks. That’s why we’ve listed it as the top reason to take out a personal loan.
If you do decide that you’re ready to ditch your debt for good with a debt consolidation loan, it’s important to figure out what your ongoing repayments will be using a personal loan calculator to ensure you can comfortably meet each payment and pay off your debt within the agreed timeframe.
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Emergencies
Your car has broken down or you’ve just opened your mail to find a nasty utility bill inside. These are the “Ah!” moments that could call for a personal loan that will allow you to pay for the emergency expenses and give you a bit of breathing room.
While a personal loan can be useful in emergency instances, make sure you don’t spiral into debt by taking out too many personal loans to cover emergency expenses, as this will negatively impact your credit rating.
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One-Time Purchase
Dreaming of sipping margaritas in a tropical beachside destination or is that latest sportscar model too good to resist? Sometimes all you need is a small helping hand in the form of a personal loan to kickstart those dreams sooner.
When on the hunt for a personal loan for one-time purchases, make sure you look for flexible features like an extra repayments facility, so when you come into extra cash (e.g pay rise or work bonus), you can pay off the personal loan sooner.
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Short-Term Relief
If you need a break from your everyday expenses, a personal loan could be just your ticket to short-term relief. While a personal loan shouldn’t be the solution to your money-woes, it is often a better short-term option than a credit card, as personal loan interest rates are generally significantly lower than plastic.
But as with all things, make sure you’re not stretching yourself too thin and can pay off anything you borrow over the personal loan term.
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Cash Advance
If you only want to borrow a small amount of cash, a fast cash loan could be your borrowing match. Many specialist online only providers have speedy online application processes and will often deposit that cash into your account on the same day your personal loan application has been approved.
Just keep in mind with many cash advance loans, there are usually higher fees than with a standard personal loan, so always read the fine print so you don’t get caught out and budget accordingly.
Whatever your reason for taking out a personal loan, always make sure you compare the personal loan market to ensure you’re getting the best deal with the features you need.
Decided a personal loan is right for your borrowing situation? Get in touch with the team at Rapid Loans New Zealand, to compare personal loans today!