Financing That Puppy
For the most part, a pet loan is going to be for a puppy. Sure, there are some felines out there that can get a little pricey and you, of course, also have some exotic birds but 99 percent of people looking for a pet loan are buying a dog.
This is reasonable since dogs are so very popular in this country and because pure bred dogs keep getting more and more expensive. Even an average pure bred puppy can go for 2000 dollars or more. Get into the exotic or hard to breed animals and you can top 5000 dollars without blinking an eye.
The current state of the pure bred animal market is why so many people have begun turning to loans to get their new family pet. Without a loan, many people would not be able to afford one. Fair or not fair, that is the world we live in. Having said that, should you get a pet loan? Maybe and maybe not. Let’s dig a little deeper into the reasons to get a pet loan and the reasons to avoid one.
Reasons To Get A Pet Loan
First, some reasons that you might consider getting a pet loan for your next fur baby.
You can afford the payment and have good credit.
If you have good credit, but just do not have the money to buy your pet outright, a loan might be a good option. The alternative would be to take the money that you would have spent on the loan and save, but that could take you years and cost you countless hours of enjoyment.
With good credit, the cost of the loan could be worth avoiding the time without an animal. Plus, if you already know that you have room in your budget, it will not cause any undo burden on your budget.
You do not want to deplete your savings for a pet.
A puppy from a breeder can cost thousands of dollars and can empty out a savings account. This is money that could be used for an emergency or that might be better held on to for security.
If you get a loan, you can keep your savings and still get your pet. In addition, you can ask for additional money that you can use to cover your pet’s first year expenses.
First year expenses for a puppy can be anywhere from 1000 to 2000 dollars. This includes things like bedding, food and of course all of the necessary veterinary visits. Your puppy will need 2 to 3 visits alone just for vaccinations and if you plan to have them spayed or neutered, this can be a hefty cost.
A pet loan can help you pay for all of these first year expenses without depleting your backup funds.
You have champagne tastes.
When it comes to pets do you have champagne tastes but lack the budget to pay for them all at once? A loan can help you out.
Get the puppy that you have always dreamed of with a loan and get a payment plan that can allow you to fit it nicely into your budget. Who says that nice things are only for the rich? A loan can let you afford the puppy that you really want.
Reasons To NOT Get A Pet Loan
Truth be told, there are just as many reasons, if not more, to not get a pet loan as there are to get one. Here are some situations where you might ot want to take out a loan.
You have bad credit.
If your credit score is not where you would like it, a pet loan for bad credit might not be in your best interest. This type of loan would come with high fees and/or interest and for something like a puppy, it may not be worth it.
When trying to determine the worthiness of the loan, take a look at all of the details, in particular the TOTAL cost of the loan. This is the cost of the loan, if you carry it to full term, including all interest and fees. Compare that total to the amount that you are borrowing. If you borrow 1000 dollars and the loan costs you 3000 dollars in total, it is probably not a good deal.
The cost that you are willing to accept is a personal decision but try to be realistic. Do not let a pet cost you to much.
Your budget is already tight.
A loan is nothing to mess with if your budget is already tight. The money to pay for that loan payment is not going to just come out of thin air.
Before taking on a loan, take a minute and calculate what your budget would look like with the new loan payment. Add up all of your expenses and include allotments for things like food, entertainment and fuel. Be sure to include everything that you spend money on each month, even that morning cup of coffee.
Next, add in the loan payment and compare it to your take home pay. If things look tight, perhaps you should pass on the puppy.
Alternatives To A Pet Loan
If you want a new family pet, a pet loan can get it for you, but it might not be the only choice. Here are some alternatives that you can consider that might prove to be a better choice.
Saving up the money.
If you can be patient, saving your money for a pet is a smart choice. It would allow you to avoid all of the fees and/or interest that would come with a loan.
If you are not a very good saver, it really is not that hart to become one. There are two keys to saving successfully.
First, you need the money to be out of sight and out of mind. The last thing that you would want to do is put it in a savings account attached to your regular checking. The ability to instantly transfer money would be too big of a temptation. Instead, choose an online savings account. You will earn more interest and transfers would take 24 to 48 hours to complete.
Second, you need to automate the savings. Set up automatic deposits to your checking scheduled on the day that you get your check. In no time at all, you will forget about the money completely and your savings will build fast. If you get paid biweekly, just $50 a paycheck will yield nearly $1500 over the course of a year with interest.
Get a rescue pet.
There are thousands of dogs in this country that could use a good home. Many of them will end up being euthanized it they do not find one.
If you do not HAVE to have a pure bred puppy, head down to your local animal shelter and adopt a pet. There is usually a small fee but that helps to pay for the operation of the shelter and will usually cover the spay or neuter cost of your pet. If you are short on funds, wait for a discount adoption event in your area.
Should you be dead set on a pure bred animal, you still have options when it comes to a rescue pet. Nearly every breed on the planet has some sort of rescue agency devoted to it. Do a quick search and you should find one or several. These organizations are generally a bit pickier about who they allow to adopt their pets, so be prepared to show your worthiness.