If you missed part 1 last month, don't hesitate to call MTF Silverdale now or review last months articles under this segment of the Hibiscus Coast App.

Debt Consolidation

A borrower may decide to transfer their existing dents from many sources into one loan, paying one interest rate with one regular payment.

This may decrease the interest paid overtime, or simply be a more convenient way of managing your personal finances.

Deposit

A deposit is an initial amount of money that you pay upfront to confirm a purchase, often required by a lender so that you have some equity in your purchase that is being financed.

Direct Debit

When you set up a direct debit, you are giving someone else authority/approval to take regular payments from your bank account on a set schedule, which may ne weekly, fortnightly or monthly in line with your income.

Dishonour

If your direct debit (DD) doesn't go through because there wasn't enough money in your account, this is known as a dishonour.

MTF doesn't charge dishonour fees, although other lenders and your bank might.

Equity

Equity is the difference between how much your vehicle is worth, and how much you have left to pay off.

Guarantor

A Guarantor is usually (but not always) someone who can make it easier for a lender to accept the borrower for a loan - often they will have a better credit score, or the ability to cover the loan payments if the borrower can't.

As with a co-borrower, the Guarantor has the same legal responsibilities under the loan as the borrower.

Interest

When you borrow money from any lender, you'll need to pay back the interest as well as the original amount that you borrow plus any establishment fees.

Interest and establishment fees is the cost of borrowing, and allows the lender to cover their own operating expenses.

Mechanical Breakdown Insurance (or MBI)

This is an optional insurance policy designed to protect you from expensive repair bills on your vehicle, should it break down or develop a fault.

As with any other insurance product, you pay a premium (which may be added to your regular loan payments) and have obligations to fulfil in order to keep the insurance cover active.

An MBI has a limited range of breakdown conditions that may be covered for each vehicle, so ensure you read and understand your MBI terms and conditions before purchase.

MTF Silverdale can issue a MBI for an existing vehicle without finance if you wish to protect against the unexpected, Simple email us on [email protected] for further details.

Payment Waiver

Payment Waiver is an optional MTF product that can cover the cost of your loan repayments due to unforeseen life events such as illness, injury, unemployment, terminal illness, death or bankruptcy if a business.

There are a variety of Payment Waiver levels to choose from to suit your situation and the premium cost for this product can be added to your regular loan repayment, spreading the cost over the term of your loan.

Was the above useful?

We hope this has helped you to cut through some of the jargon - it's important to us that you understand the language and feel comfortable and confident about your lending.

If we've missed something, or there's another term you'd like to know more about, please call in and talk to us or give us a quick call.

You are protected by responsible lending laws.

Because of these protections, the content above is not regulated financial advice.

This means that duties and requirements imposed on people who give financial advice do not apply to this content.

This includes a duty to comply with a code on conduct and a requirement to be licensed.

As this is part 2 of 3 instalments, and you feel you want to know the rest now, don't hesitate to email us at [email protected] for the full jargon buster!