If you’re looking to make a big purchase and haven’t quite got all the funds available, a personal loan might be just what you need. Here, we look at the top reasons Kiwis take out personal loans.
Debt consolidation
Debt consolidation can save you money and make your life easier – as long as you do it right. By tidying up all your personal debt, including credit and store cards, you can make one monthly payment rather than several different payments to different providers.
Not only does it help you budget easier, but it could also save you money. Personal debt consolidation loans often offer interest rates lower than what you are paying on credit cards – meaning you can save on interest payments.
Another reason Kiwis use personal loans is that having a definite end date means you could get debt-free faster. You can’t re-use any of your repayment, so it all is committed to reducing that debt level – unlike a credit card.
Home renovation
While many people may ‘top up’ the mortgage, lots of Kiwis have also discovered how useful a personal loan to fund their renovations can be.
If you are topping up the mortgage, you may find the lender controls the payments to your contractors. With a personal loan, you have the control; you can pay your invoices straight away, without having to wait for your mortgage lender.
In addition, as a personal loan for renovations is not usually secured against your property, you can save money by not having to have a valuation completed, to access your funds.
Buying a vehicle
Whether you need a new family car or want a recreational vehicle such as a boat or a caravan, a personal loan can help you out. Getting a loan pre-approved for your vehicle purchase often means you can negotiate with the car dealer on price, as you are not relying on them for finance as well – giving you better flexibility.
In addition, perhaps the vehicle you have set your heart on is being sold privately. A personal loan means you can buy the car, even though it’s not through a dealer. We recommend, of course, that you make sure you get a mechanic to complete a vehicle inspection and also check that there’s no finance owing on it already.
Funding a wedding
If wedding bells are in the air, a personal loan can help make all your wedding wishes come true. If you feel your wedding budget is a bit stretched, and you are having to compromise, consider taking out a personal loan.
Having a personal loan means you can pay the deposits to secure the venue and caterer of your choice, or it could pay for your honeymoon. Weddings can be expensive, and many couples now choose to fund the wedding themselves. A personal loan can help you have the wedding of your dreams quicker than if you have to save for it.
Personal loans can be tailored to your budget, and you can often make additional payments without penalty. So, if a generous wedding guest or two gives you money as a gift, you could pay the loan off quicker. Easy.
Personal loans can be used for a lot of short and medium-term goals. If you need some additional funds to help you achieve your goals, give Motor vehicle Finance a call today – we’re not just about car finance! We’re here to help.
