Cash emergencies occur even to those who are adept with managing their monthly spending and income.
If you find yourself requiring a quick cash infusion without the requisite amount of savings, one way of acquiring the funds would be a fast cash loan, available in New Zealand.
Read on to learn how you can avoid financial ruin while acquiring any funds you may require, quickly.
New Zealand commercial banks would be most peoples’ first stop when looking to take on some form of credit. However, smaller providers provide easier and faster credit approval, although they may charge higher fees and rates. Their repayment schedules may be challenging to some as well.
In order to have your financial needs fully met, consider all possibilities open to you when searching for various forms of emergency cash credit facilities.
For those with credit cards, you can withdraw any amount of cash that you require, as long as it is under your prescribed limit. You will receive the cash immediately, but you will have to absorb the withdrawal fees.
If you are a homeowner, these are credit facilities that are available to you, as long as your property equity is sufficient. Due to your home serving as security, there is lower risk due to the interest rate being lower. Payments should be more manageable but the risk of default is losing your house.
Also called signature loans, unsecured loans do not need security I the form of an asset. This type of loan is pegged on your income, which has to be sufficient enough for repayment, or the lender will decline your loan request. This type of credit facility features higher interest rates, making it dearer to repay because of the lack of asset security. The upside is you are unlikely to lose a valuable asset.
Depending on various factors, the best solution to a financial emergency is an unsecured loan. It repayment structure may be challenging because of its elevated interest rate but on the other hand, you will not be likely to lose a valuable asset such as your home should your financial circumstance deteriorate. Lenders that tend to pay extra attention to your needs are credit unions or banks.
A friend or family member is bound to show more compassion to your dire financial situation than a corporate entity such as a lender. That is why when considering what form of financial credit to request for, borrowing from a loved one should be among them. Following the transfer of the agreed amount, a loan contract should be drawn up and signed by both parties, to ensure peace of mind.
Conversely, you should not feel aggrieved should one among your loved ones cannot lend you money. They may not have the liquidity or they may be saving their own rainy day fund. Either way, it would be best to thank them for considering your proposal and move on to the next quick cash loan option on your list. There are others out there willing to extend peer to peer loans to others, as long as their conditions are met.
When all else fails, your final option may be to consider a payday loan. These loans feature difficulty in repayment and are prohibitively expensive, but can be the sole option especially for those with limited disposable income or bad credit. The catch with this form of fast cash loan is being able to repay it on time and fully. You can create a debt cycle if you are not careful, as spiralling costs can affect your financial health.
Payday loans are notorious for leaving loan seekers financially destitute, if not utilized with extreme caution. It would be extremely unwise to take out more than one at a time, and slightly less so to take several within a short amount of time. This is because they feature some of the highest fees and interest charges in the loan world, which is levied on a daily basis, making them very expensive. You may be able to qualify for a bank loan, as a payday loan is financially very risky.
For a loan facility more dangerous to your current and future financial health, look no further than title loans. This type of loan features an asset pledge as a form of security, typically a vehicle. The cash will be disbursed to you quickly and easily enough, but the drawbacks are high monthly payments and prohibitive interest rates. You are liable to lose your asset, in this case your car, should you default on this form of credit.
Different reasons spur people to apply for fast cash loans. The top ones are:
This larger amount type of loan is used to pay off every other loan you are carrying, such as auto loans, student loans and credit cards. It lessens the load on you by having one, hopefully manageable payment per month, instead of several. It can be beneficial if the interest rate is lower than all the others you had before.
Major, emergency expenses such as major vehicle repairs or unexpected medical costs have the ability to negatively affect your finances. Ideally, an emergency account would step in to pay for the event, but in the absence of one, a cash loan can be taken out to see you through.
Renovations can really add up, with most homeowners not having as much as is required on hand. A quick cash loan can bridge the difference as the work is being done, with payments being made afterwards.
As one-time, large expenses go, weddings are high up on the list. A dream wedding can cost thousands of NZ Dollars, and a loan is one way couples’ use to pay for their big day, with the payments being made after the ceremony.
While it is always best to save for anything you desire, should an opportunity arise that is too good to pass up, a quick loan can be used to pay for the vacation of a lifetime, and pay it back later.
A fast cash loan can be advantageous for a number of reasons. For instance:
Many loan types such as student loans, auto loans and home loans can be used only for a specific purpose. A quick cash loan can be used in many different ways.
Most cash loans do not require any form of collateral. This makes them ideal for those without assets.
This loan type typically has higher limits when compared to credit cards, but similarly can be used for a comparatively lower dollar amount need.
When compared to other forms of credit, a quick cash loan can be cheaper, although they are not the cheapest form of credit by any measure. Shop widely for the best loan option for you.
For those with poor credit, it is still possible to qualify for a cash loan. Your interest rate may be higher than that charged to an individual with better credit, but you are not likely to be turned down for a less than ideal credit rating.
Some loan types, like payday loans, are pegged to your monthly income. For those who don’t manage to stay on top of them, this can spell disaster. Cash loans however have much more leeway for you to be able to pay it off, making it more manageable for you.
As with most things in life, there are cons to everything. In the case of cash loans, the drawbacks are:
Quick cash loans must be paid every so often, as agreed with your lender. Should you default, you are in jeopardy of losing an asset (secured loan) or legal action (unsecured loan).
In comparison to other types of loans, interest rates can be significantly higher, more so for those with poor credit.
While emergency funds loans may appear straightforward, there are far cheaper alternatives. One is selling off an unused asset that you own, such as an extra car, fancy sofa, home theatre or high end television set. Following the sale, you will have funds that you can put towards your emergency situation.
The upside to this is a lack of interest payments. This can shield you from financial woes down the road, so much so that borrowing in other ways will end up costing you more than the asset was worth!
To ensure you get the best deal for your circumstances, look out for the following:
In summary, quick cash loans can be an easy and convenient form of cash credit but it comes with several caveats. Make sure it is the best option for you, and that you care prudent with the funds.