A pet loan is a serious matter. If you are not careful, you can get yourself in a lot of financial trouble. Do not assume that just because a lender has approved you that everything is okay. Only you know your real situation when it comes to finances.
If you are considering a pet loan, take the time to consider every aspect of the potential transaction. Here are some things to consider.
Can You Afford The Pet Loan Payment?
This should be a major consideration. Many people take out loans and just assume that they can afford it. They think that if the creditor approved them that they are good to go and that the money will just work itself out.
This is no way to manage your finances. Instead, you should fit the loan payment into your regular budget and see how things look. If you do not have a written budget, it is time to write one. A budget can be as simple as a list of your expenses, including allotments for things like gas, food, savings and entertainment.
Once you have your budget, insert your loan payment and see how things look. If you still have plenty of money left over, great. If not, you need to either find a way to free up some money or consider passing on the loan.
Is The Cost Of The Loan Acceptable?
If you are taking out a pet loan with bad credit, the cost of the loan might not be worth it. This is for a pet after all and unless you are getting a dog for your work which is sometimes the case with dogs like German Shepherds.
For most, a purebred pet is a luxury though and is something that you can do without if the cost of the loan is too high. But what is too high of a cost?
Only you can really answer that question. Take a look at the total cost of the loan and make your decision. The total cost of your pet loan is the total amount of money that you will pay if you carry the loan to full term.
For some, it might seem reasonable to borrow 2000 dollars and have to pay back 3000 dollars. For others, this might be unacceptable, everyone has a different number.
Are There Other Loan Options?
Finally, you should look at all of your options. You might have many other ways to get the pet that you need that you have not even thought about.
One possible alternative is a rescue animal. Even if you have your heart set on a puppy, you might be able to find a young animal at a rescue. Every breed of animal has a rescue devoted to it. Adopting an animal that needs a home allows you to do a good thing and save a lot of money in the process.
Keep in mind though, rescues are not free. These organizations use adoption fees to fund their operations. The adoption fee will also often go towards spaying or neutering your animal.
Outside of a rescue, you can also try applying for a credit card to fund your new fur baby. Many breeders these days have gotten with the times and are accepting credit cards. Keep in mind that credit cards often have interest, but if you are already looking at a bad credit loan, the interest could be less with a credit card.