How to Save Money When Borrowing


Tags: loans,personal finance,savings,


As individuals we are always looking for ways to save money. Even when considering how and the reasons for borrowing, there are opportunities to save. Here are some great tips for saving money when borrowing; keep them in mind the next time you’re planning to take out a loan or make a high value purchase.

Shopping Around

This might sound like an obvious tip, but it is amazing how many people simply accept the first deal that they find when looking for a payment plan or loan. The next time you are looking for a loan, credit card, or another finance product, help yourself by drawing up a list of what you’re looking for.

This might include a specific type of loan or a certain level of repayments. By listing your requirements first and then eliminating any lenders that can’t meet your needs, you ‘ll quickly find yourself looking at the best deals for your circumstances, and you’ll avoid simply taking out the first product you find.

Work Out What’s Affordable

If you focus on affordability, you are likely to find yourself saving money when borrowing. When we talk about affordability, we mean the repayments you can afford to make comfortably within your household budget and current circumstances. Let’s look at these two scenarios for someone looking for a personal loan:

Person A goes to a finance website, sees the example terms and repayments advertised, can’t afford them, so leaves and doesn’t apply for a loan. This pattern is repeated throughout the shopping around process.

Person B works out what is affordable for them, then starts shopping around. Because they already know what’s affordable, they can quickly dismiss the lenders that don’t offer a flexible finance option, and can quickly look elsewhere.

Woman holding red piggy bank

By looking for a loan that is affordable, rather than simply taking out the first loan you find, not only could you save a significant amount of money but you also reduce the risk of missing payments and damaging your credit file as a consequence of borrowing more than you could really afford.

Keeping Capital for Emergencies

If you are planning a holiday, or are considering undergoing cosmetic surgery to improve your appearance, you might be able to save money by opting for finance rather than using your own savings. When you are looking to fund a lifestyle purchase, you can take the time to shop around, understand

what is affordable, and then find a specific loan or payment plan that fits your needs. If you spend your savings on your lifestyle purchase, then find yourself with an emergency expense, you may find yourself taking out the first loan that comes available, or even using dangerous short term finance.

By holding onto your own capital to cover emergency costs when they arise, you can instead use a payment plan for your lifestyle purchases, and repay loans at an affordable rate over a time suited to you and your financial circumstances.

How MacCredit Can Help You Save Money

Here at MacCredit, we are specialists in helping our customers find the best and most affordable loans if they are looking to secure finance for medical treatments or procedures. We are committed to ensuring you find the best payment plan that is most affordable under your circumstances.

By coming to us, you will be put into contact with the lenders that provide payment plans closely suited to your needs, which can help you save a significant sum of money in the long term. It is possible to save yourself significant sums money when borrowing if you follow these tips. If you are looking for a payment plan to cover the cost of a medical procedure, call us now on 1300 884 355.

MacCredit SM