Where Should You Use a Personal Loan? 5 Common Uses
Whether you’ve got a secured or unsecured personal loan, chances are that you can use the funding to pay for pretty much anything. With personal loans, the lender offers you a set amount of money that you will need to repay over a period of time, typically over a 12 to 60 month period. Here are 5 common uses for personal loans.
Refinancing Credit Card Debt
High-interest credit card debt can put a burden on your finances and make it rather challenging for you to attain your financial goals. Rather than continue paying your credit card bills for an indefinite period of time, you can get a low-interest personal loan and clear off all your credit card debt. You will then have only one payment to make towards one loan, every month, and can budget a lot easier.
Consolidating Debt
Maybe you have a few credit card debts and outstanding loan payments, and a few other payments to make – each with a different rate of interest and monthly payment. It’s safe to say that keeping track of all your payments can get difficult. You can resolve this by consolidating all your debts with a loan. Keep in mind that some of your debts could have lower interest rates than your personal loan – in this case, you may want to keep the lower-rate loan as is and not consolidate it.
Paying for Home Improvements
When you buy a home, you’re not just responsible for paying for the home; you also need to pay for the maintenance and repairs, which can amount to a lot of money. If you don’t have the cash in hand to pay for home-related expenses, you can opt for a personal loan.
Making a Large Purchase
Since personals can be used to pay for pretty much anything, many customers get a loan to make a large purchase. If you don’t have the money saved up to buy something you need immediately, a personal loan could help.
Paying Off Medical Bills
Medical bills can amount to a lot, and your health insurance may not cover all of it. Even if you have a great medical insurance plan, it is likely you will need to pay the out-of-pocket expenses. If you haven’t saved enough to pay for such expenses, you could get a personal loan.
