Loanplace

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…

Loanplace Remains Open For Business

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’ll Do Our Best To Help You

We’ve always prided ourselves in going above and beyond for our customers here at Loanplace.

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.

Stay Alert, Stay Safe

Should you have any queries regarding the current lending conditions and options available, please feel free to get in touch.

Speak with one of our personal consultants today on 0800 461 228 or email us directly at info@loanplace.co.nz.

Or…

Use our free personal loan calculator

Look after yourself, and each other.

Sincerely,

The Loanplace Team

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.

1. Clean Up Your Credit Score

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.

Read our quick guide to get up to speed.

2. Compare Different Providers

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 for 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.

3. Secure Your Loan

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.

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.

Speak with one of our personal loan consultants today on 0800 461 228 or email us directly at info@loanplace.co.nz.

Or…

Use our free personal loan calculator

Money worries are no fun.

As anyone who’s ever struggled to pay a bill or had to forgo a fun activity in the name of the weekly budget knows…

Money can buy peace of mind — even if they say it can’t buy happiness.

A recent survey by Sorted shows that Kiwis worry about money.

A lot.

Almost of a third of those surveyed reported that money worries had prevented them from using health services.

A similar number reported making poor food choices because of financial stress… and one in five reported that money worries were causing problems in their personal relationships.

So, chances are you’ve experienced — or know someone who is experiencing — money worries.

Taking Control Of Your Finances

Money problems can make us feel out of control.

When we feel our options are limited because of bills or debt, it can be easy to stress out and feel helpless.

But you always have options.

Even if you feel you’re in a dire financial situation, there will be some things you can do.

You might choose to review your financial situation with a friend, a professional money coach or financial advisor to get clarity around what you can do to improve things.

You can also access apps like Pocketsmith — which plugs into your bank account to analyse your spending and give you a clear idea of how to budget based on your expenses and income.

You always have options.

If your financial stress is due to debt, then there’s one thing we recommend doing right off the bat.

Crush Your Debt Repayments Down To Simplify Things

So many Kiwis we speak with have multiple debts.

They have taken various loans over the years — sometimes for stuff they can’t remember buying it was so long ago — that their account is constantly being stalked by direct debits.

The first thing we help them do is to consolidate those debts.

It’s a simple process where a single new loan pays off all the old loans, at a renegotiated interest rate and repayment term.

You still have the debt, but it’s now one debt which you repay at the pace you can afford — ideally reducing undue financial stress.

We’re always ready to help you understand how debt consolidation could help you improve your immediate financial situation.

It’s free to speak with us and see what’s possible.

Speak with one of our debt consolidation consultants on 0800 461 228 or email us directly at info@loanplace.co.nz.

Or…

Use our free debt consolidation calculator

Renovating houses is a fundamental part of Kiwi home ownership.

First home buyers, in particular, look at property not so much in terms of what it will be like to live there…

But how much more they can sell it for after spending a year or two sprucing up the interior and landscape.

Adding value to a property can be the fastest way for Kiwis to move themselves off the first rung of the property ladder.

To do this, of course, requires money.

New carpet, bathroom fittings, windows, air conditioning systems — you’ll need to spend a fair bit of money if you want to add substantial value to a house.

The question is, should you borrow money to do this?

Our answer is yes, IF you go about it the right way.

Identify The Parts Of Your House That
You Can Add The Most Value To

The fact is some rooms cost more to renovate. Bathrooms and kitchens tends to cost the most to do up (courtesy of appliances and fittings etc.).

But then the bathroom and kitchen tend to be central points of focus for prospective tenants and buyers in the future, too.

So as you’re determining your DIY project’s budget, be sure to take into account where you’ll spend that money.

Research the highest impact areas for your renovation dollars.

Then, determine your budget based on the increase in capital you predict your project could create.

Then…

Borrow Smart To Ensure Your Capital Gains
Don’t Get Swallowed Up By Interest Payments

If you’re borrowing money to fund your renovations, make sure the numbers add up.

If you borrow $20,000, for example, and you calculate that your property’s value will increase by $30,000 after the DIY investment…

Then you stand to gain about $10,000, in theory, when all is said and done.

But…

Don’t forget to take into account that the interest you pay on the money you borrow will eat into that profit.

This means finding a loan at a competitive interest rate is paramount when it comes to maximizing the returns from your DIY project.

Because paying too much interest could negatively impact your potential gains!

So how do you keep your interest rate low?

The more secure the loan, the less interest you will pay. To secure the loan you offer up assets as security in case of default.

Property and vehicles can be used to secure a loan and achieve a lower interest rate — so you can offer the house you’re renovating as security on the money you borrow.

If you have any questions about personal finance for DIY projects, get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

If you’d like to see how much you might be able to borrow for DIY project…

Use our free personal finance calculator

Are you thinking about buying a new car in 2020?

Will you be looking for finance when you do?

Then there’s a few important things you should know before you get the keys to your new vehicle.

The more time and energy you put into understanding the different types of car loans out there (and how the various factors will impact you over the duration of the loan), the better placed you’ll be to get the right vehicle under the right financial conditions. 

The AA has some sound advice for those looking to buy a new car on finance.

And Loanplace has some of the best offers available for Kiwis looking for the perfect car loan.

Three Things You Must Understand Before You Sign A Car Finance Deal

The first thing you should work out is how much of your weekly budget you can feasibly afford to commit to making the repayments on your new car loan.

You should never borrow more than you can afford to repay — this especially goes for car finance.

Second, you should know your credit rating. This will help you ensure your loan provider is offering you a fair deal. 

(If you’d like to know more about your credit rating and how to repair it, read our post.)

Thirdly, it’s vital you take the time understand the structure of the loan you are applying for.

Don’t get caught up in the excitement of buying your new car to the point where you miss important points about the loan agreement.

(Our consultants will always talk straight with you about the loan structure, your repayments and conditions.)

Found The Right Loan? Protect The Car You’re Buying It With.

A car is a vital part of life in New Zealand. But, it’s also prone to many unforeseen circumstances.

Cars break down, people have accidents or have their car stolen…

In some cases your financial situation might change and you may not be able to afford your repayments. 

The good news is you can choose a loan provider that offers additional benefits like vehicle insurance, mechanical cover, protection against loss of value and even financial protection that means you won’t be stuck paying off a car you can no longer afford.

If you have any questions about car finance, get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

If you’d like to see how much you might be able to borrow for a new car…

Use our free car finance calculator

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.

If you have any questions about debt consolidation, get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

You’ll speak with a dedicated debt consolidation consultant who can walk you through how you might be able to pay down your debt faster with a consolidation loan. 

See for yourself with our easy-to-use debt consolidation calculator.

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. 

If you have any questions about obtaining fast, fair finance, we’re always happy to help.

Get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

See what’s possible with our easy-to-use debt consolidation calculator.

In this final Loanplace 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.

Get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

See what’s possible with our easy-to-use personal loan calculator.

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…

If you have any questions about obtaining fast, fair finance, we’re always happy to help.

Get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

See what’s possible with our easy-to-use personal loan calculator.

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 Loanplace 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:

Loanplace 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. 

If you have any questions about obtaining fast, fair finance, we’re always happy to help.

Get in touch with us on 0800 461 228 or email us directly at info@loanplace.co.nz.

See what’s possible with our easy-to-use debt consolidation calculator.