6 Ways a Personal Loan Can Help You Achieve Your Goals
We may not always have ready funds to get what you want it when you want it. That’s where a personal loan may come in handy. With a much lower interest-rate compared to credit cards, a personal loan can be useful in our everyday lives.
Here are six common reasons people apply for a personal loan:
Keeping track of multiple smaller debts and bills can quickly get overwhelming. You could instead use one larger personal loan to pay off and close several smaller debts with high interest, like credit card balance and student loans.
Using a personal loan for debt consolidation can significantly lower the amount of interest you have to pay and also reduce your monthly repayments. It also gives you the opportunity to get your finances back under control.
Perhaps your kids are growing up, and you need an extra bedroom? Or you may want to update your home with a modern outdoor entertaining area or new appliances. While you’re transforming your place into your dream home, the renovations could also increase the value of your house. Luckily, you don’t have to put your plans on hold due to lack of funds. A personal loan can help you get your renovations underway in no time at all.
Some occasions happen once in a lifetime, like organising a destination wedding or a surprise 40th getaway for a loved one. You may not have the cash you need handy, but that doesn’t have to hold you back from making it grand and memorable. A personal loan can help you fulfil your dreams without having to wait.
Realise your travel dreams
It might be a long overdue family holiday or that you’ve come across a travel deal that’s too good to pass up. Putting it on your credit card may seem like the easy option but will cost you high interest if not paid off within the interest-free days. A personal loan may be a better option. With a much lower interest-rate and a definite period to pay off the loan, you can have that holiday now and pay it off with easy-to-manage repayments.
Emergency medical expenses
Life can be full of surprises, but not all are pleasant, like a sudden death in the family or a serious medical diagnosis requiring expensive treatment. In situations like these, you may not have sufficient funds to tide you over, only adding to the stress. That’s where a personal loan can help you with the necessary funds you need. This gives you the flexibility to gradually pay off the loan and can focus on getting back on your feet.
Buying a new car
Updating your car is a part of life, whether it’s to accommodate a growing family or just a matter of upgrading to a newer, safer model. You may not be able to afford to pay for a car outright, but a personal loan can help you own a car now and pay it off gradually over a set period.
It’s always important to remember that a personal loan is still a debt you have to pay off. It’s always best to consider all your options to ensure that you will be able to manage the repayments without suffering undue financial stress.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for information about the best options for you when it comes to your mortgage.