Dear Customers & Prospective Customers,
In this post today, we want to address the topic on everyone’s mind this week: The Covid-19 Novel Coronavirus.
We are now officially in a state of global pandemic.
The effects of the Coronavirus outbreak — and the measures the New Zealand Government has taken to slow it — reach into every facet of our country’s businesses and communities.
That means the financial markets — and specifically the lending business ecosystem — will be affected by this.
So, allow us to clarify a couple of things.
Firstly…
We are still accepting, processing and settling finance applications across our range of products and services.
As with all Kiwi businesses, we remain vigilant for the wellbeing of our staff and their families.
But at the time of writing, we’re all hands on deck.
Should this change, and mean we are unable to serve our customers at our normal capacity, we will let you know.
Like the rest of the country and world, we are of course monitoring the situation daily and standing by to adhere to Ministry of Health directives.
We will do our best to remain fully operational.
And…
We’ve always prided ourselves in going above and beyond for our customers here at Finance Today.
While there are obviously huge and rapidly changing factors at play right now, we remain focused on matching our customers with the best possible financial solutions from our network of lenders across the country.
The basic conditions we must use to assess loan applications remain the same.
We will always ask for proof of income.
We will never lend to a customer who can’t afford to repay their loan.
Our commitment to responsible lending in line with regulatory requirements and industry standards remains the same, regardless of how severe and prolonged the Coronavirus outbreak becomes.
Should you have any queries regarding the current lending conditions and options available, please feel free to get in touch.
Look after yourself, and each other.
Sincerely,
The Finance Today Team
Posted in Business Loans, Car Finance, Debt Consolidation, Mortgages, Personal Finance
If you’re applying for a personal loan, it often pays to spend a little time on a few important things before you sign on the dotted line.
It can be very easy to get a loan.
But, it can also be easy to cheat yourself out of getting the best possible personal loan if you don’t consider a few important factors first.
As you probably know, the interest rate at which you borrow money determines the amount you’ll ultimately pay back to your lender.
So in today’s post, we’re sharing three important ways you can ensure you get approved for a personal loan at the best possible interest rate.
If you don’t understand what your credit score is — or how you can check and improve it — this is the first thing you should do.
Basically, all your previous financial history, from credit cards to mobile phone bills, contributes to your credit score.
This is how potential lenders can get a quick idea of whether you’re a good customer to lend money to.
If you have a poor credit score, you may find that you have to take a personal loan at a higher interest rate compared with someone who has a good credit score.
If you’re eligible for a loan (and improving your credit score may be the difference), then you might be tempted to take the first loan you find.
But it’s a good idea to do your research.
Different providers will offer a personal loan at different interest rates and over different terms.
Make sure you check reviews and get an overview of what they can offer you.
Comparing different lenders and brokers could save you hundreds or thousands of dollars.
And if you go through a broker, they can help you get the best deal from a range of potential lenders.
Also, be sure to assess what a given provider can offer you against your weekly budget.
Never take a loan you can’t realistically afford to pay back.
Generally, you can borrow money on an unsecured or secured basis.
What that means is you may have the option to offer a property, or vehicle, as collateral for a personal loan.
By ‘securing’ your loan with an asset the lender can repossess in case you fail to repay the money, you may be able to drive the interest rate lower.
This, in turn, can help lower your weekly repayments.
We’re always ready to help you understand how personal finance could help you improve your financial situation.
It’s free to speak with us and see what’s possible.
Posted in Personal Finance
Some people will tell you there’s nothing wrong with being in debt.
Others will say debt is bad and you should do everything in your power to stay out of it, not matter what.
It’s the same as when people say ‘money doesn’t buy happiness’.
They’re right…
But try being truly happy without money in the modern world, and you’ll probably arrive at a different conclusion.
The truth about debt is probably somewhere in the middle.
Most New Zealanders wouldn’t own a home, for example, if they weren’t in debt with a mortgage.
Others wouldn’t own their car.
So let’s weigh up what type of debt is ‘good’, and ‘bad’.
The Good.
Good debt, in a nutshell, is a loan that will help you improve and strengthen your financial position over the long term.
Consider the phrase ‘it takes money to make money’.
If you’re borrowing money to study, you could consider that good debt because it will increase your ability to earn money once you get the qualification.
If you’re borrowing money to build a business, that too can be considered good debt, since you might be investing in new equipment or staff to expand your operation.
The same goes for buying a home or any other asset that could add financial value to your situation.
The Bad.
Bad debt comes in two forms.
The first is when you borrow money to buy something that doesn’t add any substantial value to your life.
Like a shopping spree or a week-long bender in Bali that you can’t afford.
The second is when you borrow money at a rate that means your repayments have a significant negative impact on your weekly budget.
High interest credit cards and payday loans fall into this category.
A payday loan could cost you three times what you get when you borrow it.
That is textbook bad debt.
The Sensible.
The reality is when many of us decide to take a look at our finances and make some changes, we’re already in debt, maybe through no fault of our own.
And while on the face of it, borrowing more money would seem like a bad idea…
One exception is debt consolidation.
Debt consolidation is when you take one new loan to pay off all your existing loans in one hit.
The new loan clears your old debts, and you pay it back at a lower interest rate than what you were paying before.
This accelerates how quickly you get out of debt and — ideally — lower your repayments to improve your weekly budget.
Posted in Business Loans, Personal Finance
The pressure to spend over the holiday season can be huge. All those gifts, all that food, maybe travel and accommodation…
The bill has a way of racking up in the blink of an eye.
For many Kiwis, this means they are forced to go into debt to get through the festive season.
Whether it’s overdraft, credit card, borrowing from family or getting a loan at the bank, many of us look at our account once the holiday’s over and get a nasty shock.
If that’s you, read this quick guide on how to tackle any debt hanging around from Christmas 2019.
Focus On This Quarter First
If you’ve taken on debt specifically over the festive season, it might pay to prioritize getting rid of it in the first quarter.
In other words, if you want to get back to the financial position you were in before Christmas and New Year, use the first three months of 2020 to pay off the debt you got into.
That way, by the end of March, you’ll be back to where you were in late 2019, debt-wise.
Remember, any progress is better than no progress.
Even if you can reduce your debt by 10% or 20% over the course of the quarter, you’re on the right track.
If You Are Struggling With Multiple Debts, Try Condensing Them To Lower Your Interest Payments
We can’t stress this one enough.
If you’ve got debt spread across credit cards, loans, overdrafts facilities and so on…
It often helps to consolidate those debts down into a single loan.
It’s called debt consolidation and — depending on your circumstances — it can help you lower your repayments and pay off your total debt faster.
Loanplace specializes in helping Kiwis assess how much less they could be paying week to week on their debt.
Talk to us today about a debt consolidation.
Make A Resolution To Not Be In Debt This Time Next Year (And A Plan To Make That Happen)
The great thing about a new year is you can start doing small things today which, 12 months from now, could put you in a much better situation financially.
What sort of things?
The boring, but important, kind.
Like setting a budget, saving some money to avoid borrowing under stress next Christmas, and…
Paying off or restructuring your current debt.
Posted in Debt Consolidation, Personal Finance
In this final Finance Today blog for 2019, we’re looking ahead.
And at this time of year, we hope you are too.
The new year is traditionally the time to make plans and resolutions about the next 12 months.
So today we’re sharing three personal finance goals we think could help you end 2020 in a stronger position than you start it.
Like most things in life, good results come from making a plan and sticking to it in order to hit a specific goal.
Here’s three that could help you in 2020.
Make A Plan To Crush Your Existing Debt
Now, for many of us, getting completely out of debt within a 12 month period is a tall order.
After we pay our living costs, it can be difficult to make inroads into our debts.
But the thing to remember here is that any progress is better than no progress.
Even if you can reduce your debt by 10% or 20% over the course of the year, you’re on the right track.
And like we often say, if you’re paying multiple debts or loans, and you’re paying a high average interest rate, it might be worth looking into a debt consolidation loan to help lower your repayments.
Work Towards Improve Your Credit Rating
Your ‘credit rating’ is your history of financial decisions.
Every time you apply for a financial product or service, the details of that application enter your credit report.
By paying your bills and hitting your loan repayments on time, it shows the credit rating agencies that you are a trustworthy borrower.
That can help you applying for financial products and services in the future.
So make sure you don’t miss repayments in 2020 if you want to improve your credit rating.
Learn more about how to improve your credit rating.
Create (And Stick To) A Personal Budget
There are so many books and apps out there these days about personal budgeting.
So many, in fact, that if you’re NOT sticking to a personal budget, you have only yourself to blame.
Regardless of whether you make $500 a week or $5,000…
We all need to live within our means and — in a perfect world, which it is not — use our income to improve our financial position through intelligent spending, saving and borrowing.
If you have any questions about obtaining fast, fair finance, we’re always happy to help.
How much are you planning to spend on Christmas this year?
Are you planning? Do you have an idea what your friends and colleagues will be spending?
In this post, as we head into the final few weeks of the year and approach Christmas day, we’re revealing the hard numbers on New Zealand’s festive financial behavior.
These figures come courtesy of finder.com.
The Average Kiwi Will Spend $624 This Christmas
That’s the average Christmas spend across the nation this year.
Aucklanders will spend the most, at $731.
In Otago, the average spend is $550.
While in the Tasman district, Christmas shoppers will drop less than $400.
Where does your spending stack up compared to the national average?
Gifts are the number one expenditure, followed by travel and charity donations.
About A Third Of Us Will Use Our Credit Card To Pay For Christmas
The most popular way to pay for Christmas in New Zealand this year is with cash savings, debit card or gift card.
And, nearly a third of us will use our credit cards to cover our Christmas spending.
That means many of us will be paying down the debts we rack up over the festive season in 2020.
Others will use laybuy, borrow money from friends and family or will use a personal or payday loan.
Many Kiwis Are Using Clever Tactics To Spend Less This Year
Lots of Kiwis are cutting their festive budgets this year.
More than 30% of us have agreed a price limit on gifts with friends and family.
And 15% of us aren’t doing any Christmas spending at all.
And as always…
We’re talking to so many customers lately who are using our service to improve their situation, we just can’t resist sharing another of their stories with you today.
Jim (not his real name) is a transport operator from Northland.
For years, he’s worked on his business, expanding his fleet and building his client list with contract work.
As with many business owners who have bootstrapped their way to success, Jim hit a point where he needed to borrow some money in order to take it to the next level.
He found a property in Northland that was perfect for a new base for his business.
So he approached the bank for a loan, and, predictably enough…
The Bank Didn’t Want To Loan Jim A Cent
The piece of land Jim had found was only $70,000.
The bank didn’t like it. They said it was too remote to justify lending him money to buy — they also didn’t like the look of Jim’s broader financial position.
As we’ve seen with a number of self-employed customers we work with, Jim had multiple finance arrangements with a few different companies.
This contributed to the bank turning him down for the cash he needed to keep building his business.
But rather than accept defeat, Jim came to Finance Today to see how we might be able to help.
We Helped Jim Consolidate His Existing Debt And Secure The New Property For His Business
We took a close look at Jim’s complete financial position.
The result?
We assessed and approved a loan for $200,000 so that he could clear his existing mortgage debt…
Acquire the new block of land…
And crush his interest rate down so that he’s now making lower repayments on the money he’s borrowed than before we approved a loan for him.
In other words:
Finance Today Handed Jim A Financial Win-Win
This, for us, is the perfect outcome for a customer.
While Jim has had to borrow more money to do what he wants to do, he’s actually in a stronger financial position week-to-week thanks to the solution we put together for him.
And he’s one of hundreds of customers we’ve proudly gone above and beyond for when no other finance company wanted to deal with them.
Posted in Business Loans, Debt Consolidation, Personal Finance
In this post, we’re going to share the one thing that excites us more than anything else about our business.
It’s the powerful story behind the day-to-day business of Finance Today.
It starts with a regular New Zealand grandmother.
And it ends the way we endeavor to make every one of our customer’s experiences with us end:
In a vastly improved financial and personal situation that makes life less stressful and more manageable.
We’ll call this customer Pam (not her real name).
Pam got in touch with us a few months ago, with a serious problem…
Debt Collectors Were Chasing Her For $10,000!
The short story is: Pam kindly lent her granddaughter her credit card.
Then, her granddaughter went on a bit of spending spree.
Nek minnit, Pam was staring down the barrel of a maxed out credit card and a major — we won’t name names — finance company breathing down her neck.
Unable to repay the debt quick enough for the finance company, Pam suddenly had debt collectors calling her up.
They wanted $10,000. And they wanted it NOW.
But because Pam had been forced to default on the credit card debt…
No Other Finance Company Would Help Her Out.
The credit card default meant Pam’s credit rating check raised a red flag.
Because of this, all the finance companies she approached refused to help her out.
All, that is… except Finance Today.
Unlike the other companies she approached, we were able to dig deeper into Pam’s financial situation and come up with a solution.
While no one else was prepared to look at the full picture behind Pam’s debts problems…
We found she had her own property she could use as security on a consolidation loan.
In other words…
We Found A Solution For Pam While The Rest Just Treated Her Like A Problem
Using Pam’s property as security, we quickly assessed and approved a loan to help her get the debt collection agency off her back…
And put an end to the stressful situation lending her granddaughter her credit card had created.
Pam is one of hundreds of customers we’ve proudly gone above and beyond for when no other finance company wanted to deal with them.
As the saying goes, life is what happens when we’re making other plans.
And sometimes, the unexpected requires that we access some extra cash to cover bills, repairs, or any type of unforeseen expense.
Often, this is when people go looking for a loan.
But before you borrow money from anyone, you must consider some important things.
Borrowing without understanding what your loan will actually mean for you — over the short and long-term — is not a good idea.
So before you sign up for a loan — from anyone, even if it’s a friend of family member — always consider the following:
Match the interest rate to your goals
The interest rate is the number one variable you need to consider when you take out a loan.
It dictates what your repayments will be.
The lower your interest rate, obviously, the lower your repayments will be.
Generally speaking, personal and business loans will offer you a much lower interest rate than a short-term, pay day-style loan.
It’s important you determine whether the interest rate will suit your financial goals over the term you agree to repay the sum you borrow.
Will borrowing negatively impact your credit rating?
Borrowing money, in itself, is generally not bad for your credit rating.
Failing to meet repayments is what damages credit ratings.
Whereas paying back your loan on time can actually improve your rating.
So when you’re borrowing, if you’re in any doubt as to whether you can afford to make the repayments, consider that if you can’t…
The next time you apply for a loan, it may result in you having to accept a higher interest rate.
This is why it’s so important to…
Understand how your repayments will affect your budget
Before you borrow money, make sure you adjust your weekly or monthly budget to ensure that you can still afford you current expenses.
You should still be able to afford all your regular expenses when you add the repayments into your budget.
If that’s not possible, you need to discuss with your lender if there’s another term or structure for the loan that could make it feasible.
And, if you’re in doubt, we always encourage you to seek independent, professional financial advice.
Christmas may not feel like it’s right around the corner…
But it is.
You have about 40 days to get everything in order before the 25th — presents, your tree, food, drinks and, of course, money.
Many Kiwis feel the pinch when it comes to paying for Christmas.
Like with everything that involves money, planning is key to avoiding stress and insuring success.
So before you let the calendar run down like you did last year, check this quick Christmas cheat sheet to help you financially survive the festive season (and avoid the Boxing Day budget blues).
Beat The Festive Price Hikes — Buy Now!
Most of us get caught out by the last minute rush. December 23, to be exact.
But if you’re reading this now, it means you’re thinking ahead.
So, rather than wait for the Christmas retailers to hike their prices at the last minute while most folks are freaking buying last minute presents and premium prices…
One way to save money (and limit stress) is to buy your gifts now.
You’ll avoid the last minute price hikes, plus the stress that comes with battling all the other 11th-hour shoppers.
All in all, you could easily save yourself several hundred bucks by buying your gifts this week, not next month!
Get Yourself An Extra $350 To Go Bargain Hunting in The Boxing Day Sales
You have seven weeks until Christmas right now.
If you save $50 every week starting this week, you’ll have an extra $350 sitting in your bank account.
Combine that with the savings you could make by getting your Christmas shopping done earlier than everyone else, and you could have a tidy few hundred bucks ready for the Boxing Day Sales.
By waiting a few days, you can pick up items at massive discounts in the days after Christmas.
And, if you have some extra cash sitting around, you’ll double down on your savings this year.
Simple Secret To Avoiding Money Stress Next Christmas
Like we said, planning has a lot to do with financial freedom.
And if you’re up for changing the way you go about preparing for Christmas by making some smart financial moves ahead of time, check this out:
If you save just $20 a week starting January 1, 2020, you’ll have about $900 sitting there by the end of November.
What would your Christmas look like this year if you had an extra $900 ready to use?
Of course, not everyone does plan and save like this.
If 2019 isn’t the year where you can budget and plan your way to doing everything you need to, don’t hesitate to get in touch with our team.
If you’re applying for a loan in New Zealand, it might feel easy to get overwhelmed.
There are a lot of options to consider and different numbers you need to understand.
But rather than just going for the first loan you come across, we encourage you to do a little research before you settle on the loan that’s best for you.
Here’s a quick three-point checklist to refer to when you’re looking for your next loan.
From Bank To ‘Pay Day’ Loans: Understand The Range Of Options
The first thing you’ll learn when you start searching for a loan, is there’s a wide variety of options out there.
Don’t let this overwhelm you — it’s a good thing to have a lot of options.
Many people go to their bank first. This is the traditional place to start.
Banks can give you a good deal. But they can also be slow and inflexible compared to other types of lenders.
Then you have credit unions and peer-to-peer lending options.
And at the other end of the spectrum you have pay day lenders, who aim to give customers quick cash loans at high interest rates.
Your personal financial situation will largely determine which type of lender you wish to deal with.
Finance Today is a broker that works with New Zealand’s leading lenders and matches customers with the best option for them.
Get an instant estimate of how much we could help you borrow.
Choose A Finance Company That Prides Itself On Excellent Customer Service
You might be paying back your loan for several years after you settle on a provider.
So it pays to choose a company that has a great customer service ethic and delivers friendly, professional service.
There’s nothing worse than being bounced around a call center by customer service reps who don’t seem to care whether they help you or not!
So whoever you select to borrow money with, be sure they treat you as a valued customer, that you can contact them easily and that they provide a professional service.
Make Sure Your Loan Provider Or Broker Has A Proven Track Record
This especially goes for small lenders and pay day lenders.
Never borrow money from someone who can’t prove they deliver great results for their customers.
Make sure they clearly state their terms and conditions — and their fees.
And, if possible, choose a finance provider who can substantiate their reputation with verified customer reviews!
We get a lot of people coming to us applying for loans, convinced that they have a bad credit rating.
However, many of these people don’t actually know the truth about their credit rating — or their rights when it comes to checking and correcting it.
So before you go assuming you have a bad credit rating — and therefore need to settle for something like a payday loan when better options may be available to you…
Read this post!
What exactly is your credit rating?
Your ‘credit rating’ is your entire history of financial decisions.
Every time you apply for a loan, a mobile or internet plan, mortgage or credit card, for example, the provider has to check whether or not your history demonstrates you will be able to afford the repayments.
However, your credit rating is only as good as the information New Zealand’s ratings agencies receive about your financial behavior.
You have the power to fix any mistakes in your credit rating
Unfortunately, sometimes the reality is that credit ratings agencies record incorrect information about you.
For example, if you bought a car that the previous owner owed money on, and that debt became your debt (on paper), this could dramatically change your credit rating.
The good news is that you have the right to make corrections to your credit rating — and it is easy to do so.
You can request your own credit report at any time and make corrections via the reporting agency you deal with.
It makes sense to ensure your credit rating is accurate and not carrying any incorrect financial information about you BEFORE you apply for a loan.
Don’t just assume you have bad credit
Jumping to conclusions about your credit rating before knowing the facts could lead you to accept a less-than-ideal loan.
Checking your credit rating — and making corrections to it — is both free and easy.
We encourage you to do so before applying for any loan, because your credit rating impacts:
If you have any questions don’t hesitate to get in touch with us.
