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If you ever decide that your monthly pay packet just isn*t enough to fund your chosen lifestyle there's help on hand. There are literally hundreds of finance companies out there just waiting for you to pick up the phone and place your order. $500 or $100,000 * how much would you like? Sure we can help you, just let us get our claws into any sort of asset you may have managed to acquire (in the days when you or your partner/parents used to save) and we'll give you the cash.

Why would anyone want to save for that new couch when you could have it today * no deposit, interest free for 12 months? Tempting, very tempting and it could be in your lounge tomorrow. While you*re at it why not take home a nice rug to keep the kids* feet warm. This one here goes perfectly with your new couch. Once your finance application has been approved you can throw in the rug and just add it on to the balance. It couldn*t be easier and it couldn*t be more dangerous.

Sooner or later it all has to be paid for and that's not just the price of the couch but also the price of the money used to buy the couch all those months ago. By the time your lounge is starting to look a bit dated and faded and the cat has scratched the rug bare you*re probably about halfway through your relentless, monthly payment schedule.

It's no wonder finance companies get a bad rap. We deliver the goods, whether it's a new couch, new car or even a new house * we guarantee immediate satisfaction. The problem is that as your satisfaction wanes our bill grows and one way or another, you will pay. So we start to control you and your life * the one thing that New Zealanders value above all else, their freedom * is eroded.

But hang on a minute here. If it weren*t for finance companies none of us would own the houses we live in, none of us would be able to invest and reap the rewards of interest income. The impetus behind economic growth comes from people's ability to borrow, say, $5 for every $1 they own. Then you get any return on $5 rather than your measly $1. Borrowing money is smart if you do it right!

As long as you invest your borrowed money in something that earns more than your cost of borrowing it * it makes sense. Buying appreciating assets, investment properties, upgrading property to sell on or funding income-producing businesses does make sense.

One of the most important things is to match your funding to your project. Keep the term of the loan the same as the term of the project. If you are borrowing to purchase a property, upgrade it and then sell it on * structure the loan to match this. Keep control of your investments and don*t let them control you. Make sure you use a finance company with integrity and a reputation for repeat business. Your finance company should be your partner, not your parasite.