Borrowing Basics

The golden rules of borrowing!

Using credit can help you do many things: buy your dream house, get a new car or pay for essential household items. But fees, charges and interest rates can make borrowing money very expensive, especially if you borrow more than you can afford.

Here at Asset Loan Establishment one of our core values is to educate our clients. We ensure you have a full understanding of the product, discuss options and ways you can reduce your overall interest.

Work out your current spending and how much you can afford to repay each pay period. Give yourself a buffer by allowing for interest rate rises and unexpected expenses. Then try living on less for a few months to see if you can manage the repayments.

Think about any changes that might affect your income. How secure is your job? Are you planning to start a family or take time off for study? Do you have any health issues that may mean you'll earn less for a while? If you said 'yes' to any of these questions, you might be better off saving now and borrowing later

.Credit providers and brokers that are not licensed are operating illegally in Australia. Make sure you only deal with a company or person who is licensed.

Before you take out a loan, check the terms and conditions of any loan contract, including penalties for missed repayments or for paying off a loan early.

Read more on Car Loans and things to look out for when considering a loan here.