When unexpected costs pop up, especially around the home, many people turn to the lenders they already work with and usually feel confident they’ll be supported. But sometimes even the most reliable clients get an unexpected “no.” That’s where Loansmart steps in. We specialise in finding solutions when things don’t go to plan, and that’s exactly what happened for Kelly this month.
Kelly’s Home Repair Breakthrough
The Need
Kelly needed a minimum of $2,000 to fix her home. It wasn’t a big request, just enough to take care of essential repairs. With a strong repayment history, she expected it to be simple.
The Challenge
Things didn’t go as expected.
Kelly already had a loan with a company secured against her home, and they declined her application. She then tried another loan company, where she also had an existing loan and they declined her as well.
Kelly was confused and worried. She had always paid on time, yet suddenly couldn’t access the funds she needed for her home.
The Solution
At Loansmart, we know that one decline doesn’t mean the journey ends, and even two declines don’t close every door. We looked carefully at Kelly’s situation and sent her application to one of our 11 providers, who were able to help by using her car as collateral.
Not only did this provider approve her, but the interest rate came back at 18.95%, which was better than some of her current debts.
With approval secured, we were able to increase her loan to $15,000, at $122 per week over four years. This allowed us to:
- Clear her Kiwibank credit card ($15/week)
- Pay off Finance Now ($36/week)
- Clear Heartland ($25/week)
- Pay off Afterpay ($40/week)
- Clear her Co-op credit card ($20/week)
- Pay off Jade Financial ($31/week)
Those debts totalled $167 per week, and we replaced them with one simple payment of $122 per week, saving Kelly $45 every week, while also giving her fewer debts to juggle.
She also had $4,000 cash left over for her home repairs.
Her loan also included Credit Contract Indemnity (CCI) insurance from Provident Insurance, providing cover for unexpected events such as accident, illness, income disruption, bankruptcy and more. The cost was built into her repayments, giving her added security and peace of mind during uncertain times.
Kelly was incredibly relieved and genuinely surprised that she had options after hearing “no” from her existing lenders.
Do you have a sticky financial problem you just don’t know how to solve?
Get in touch with our friendly team today for a free loan consultation. We’ll have a chat with you about your situation and help you find a positive solution.
