An unexpected financial need could pop up at any time, and unless you have savings in place for such surprises, you may have no choice but to take out a short term loan. Short term loans Auckland often come with restrictions on the amount and repayment terms, so you should do your research before signing up for one. If you are in such a situation, here are five points to consider when applying for one.
- Make sure you can afford the instalment amount: the fact that you need to take out a loan in the first place means that you do not have the cash to spare. Check your monthly costs and responsibilities to make sure that you can afford the monthly repayment amount for the loan.
- Confirm your ability to pay off the amount within the required timeframe: before taking out a loan of any kind, make sure that your income or earnings are secure for the duration of the repayment period. For example, if you are on a fixed term contract that ends before the loan is paid off, you may want to reconsider committing to the loan.
- Check the interest and total repayment amount: check the interest rate and compare the loan amount to the total repayment amount. If the overall repayment is too high for you to repay comfortably, consider choosing a smaller loan amount.
- Understand the terms: make sure that you read and understand the terms of the loan. If anything is unclear, ask the loan consultant to clarify your questions. You can also request that a family member or friend look over the terms with you.
- Check for hidden fees: know what you will be paying for by asking for all fees to be stipulated in writing so you know your total commitment. There is nothing worse than finding out you owe more than you thought, especially after you have already signed the contract.
Acorn Finance is an Auckland based service provider that can assist with your financial requirements. Contact us now to find out more about our short term loan options. We will help you find a package that meets your specific needs.