Top Reasons For Getting a Personal Loan

Couple walking on beach at sunset.
“Pretty much wherever you go in the world, you are going to find another Kiwi somewhere.”
There comes a time in most of our lives where we require financial assistance to help us achieve our goals. Whether it be acquiring a student loan for further education, a mortgage for our first home or simply a personal loan for an overseas holiday, us New Zealanders aren’t ones to let our finances stop us from reaching our goals. There are numerous reasons why we Kiwis decide to borrow money, from the standard emergency dental bill, all the way to funding the lifelong dream of competing in the New York Marathon. We decided we would share with you, some of the more common reasons why we Kiwis borrow money and get a personal loan. To help keep this short and sweet, we took the top 6 reasons why we choose to apply for a personal loan. So without further ado, here is the list starting with the number one reason first.

1# Debt Consolidation

No surprises here, debt consolidation loans take the cake for the most common reason why we Kiwis get a personal loan. A debt consolidation loan is when we combine our existing high-interest debts into one easy to manage loan. A typical example is right after the Christmas holidays when we are back from break and are hit with all our credit card bills at once. Failing to make such payments could spell trouble as it means we have to pay additional costs and interest with next month’s bills. This is why it is rather common for New Zealanders to consolidate their existing debt into one easy to manage loan, allowing them to free up their finances and start the year right.

2# Vehicle

Vehicle loans take second place on the list with many New Zealanders using them to help with getting their dream car. Whether it’s a Ford Range Rover, a Porsche 911 or a Honda Jazz that tickles our fancy, new vehicles cost more than just your weekly pocket money. Often costing close to the New Zealand average annual salary, a new vehicle can be quite difficult to finance on our own. This is why we often reach out to lenders to help us get the funds to support our goals of acquiring our dream car. With the likes of boats, caravans and motorcycles also falling under this category, it’s no surprise that vehicle loans came in second.

3# Travel

Followed ever so closely in third place was travel loans. Pretty much wherever we go in the world, we are bound to find another Kiwi somewhere. Putting it simple, we as a country love to travel and see the world! We may have it good in our green country of ours, but that doesn’t stop us from wanting to go elsewhere and explore. Travel loans are third on the list with many of us using them to assist with the cost of flights, accommodation, cruises or even our fun money when we are out of the country. Going on an OE (overseas experience) is a common goal that many Kiwis have. We want to get out and explore, but having the funds for such an adventure can be difficult to source. This is why many of us opt for a travel loan. We go out and explore while we can, and come home and settle back into life once we are done.

4# Family

Personal loans for family reasons comes in next with many individuals requesting financial assistance to help support loved ones through tough times, as well as new beginnings. Quite regularly, us Kiwis will apply for a personal loan to help assist with the cost of a funeral for a loved one. We also, get out personal loans for other family occasions such as birthdays, weddings, pregnancies and even to fly family over to our country. Family can cover a lot of reasons for applying for a personal loan, this is why it comes in fourth on our list.

5# Home Improvement

The Classic Kiwi DIY story is one that never gets old. We all love that feeling of accomplishing our home renovation, bringing our mates around to celebrate and then explaining to them every small minute detail about how we got it done. Whether it’s to add another room onto our home, to give the kitchen and bathrooms an upgrade or to transform our backyard into our dream outdoor space, these renovations all cost a decent sum of money. We will often need to get professional help for the big jobs, but boy would we let our mates know what bits we did ourselves. Home renovations are not cheap, but they can be an excellent investment for increasing the value of our homes if we intend to sell later. But even if we have no intention of re-selling, doing a home renovation job is still a nice way to transform our house, into our home.

6# Vehicle Repair

To round the list off, we have the reason that no one likes to see, vehicle repairs. None of us like going to our mechanic for a routine warrant of fitness, failing on something small such as our headlights being too dim, and then finding out it will cost around $1,000 to get new head lights shipped and put in. Some vehicles can be rather expensive to run on the roads, and most times our vehicle repairs come out of nowhere and hit us at the worst times possible. This unexpected timing is why vehicle repair loans sit sixth on our list. We don’t have a choice half the time, and we need the money quickly so we can get back on the road with our busy routines.

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