From home improvement to debt consolidation to emergency expenses, personal loans solve a variety of purposes. In this article, we will discuss how you can use a personal loan to ease your financial burden. ⭐Personal Finance ⭐Money Management ⭐Debt Consolidation ⭐Small Personal Loans
The year 2020 is nearing its end and it’s been a roller-coaster ride. Some had to give up their jobs, while others were put on furlough. Regardless, the pandemic has taken a toll on our finances.
But as they say, life goes on. And as we accept the consequence of Covid-19 as the order of the day, we’re striving to bounce back to normalcy. With this, comes the burden of fulfilling our current financial needs while keeping future expenses in mind. Now you may be able to hold some expenses back but other, more pressing needs might require attention.
In unpredictable times like these, it is wise to safeguard your savings for a rainy day. A Personal Loan can help cover some overhead expenses that are exceeding your budget.
In this article, we will discuss 6 ways in which a personal loan can help alleviate your financial tension.
Suppose you’ve your wedding planned in 2 months and you took out a loan to cover some overhead costs. You also want to re-do the garage before you and your significant other begin your lives together. A home improvement loan can come in handy in such a case.
Now that it’s time to repay, imagine struggling to keep up with the repayment dates, installments, and interests for both of your loans. Doesn’t this sound like a recipe for a disaster? Instead of having your loans all over the place, consolidate your debt with a personal loan.
A personal loan used to consolidate debt gives you the convenience of combining the outstanding balance in all your loans, into a single monthly repayment. This will make it easier for you to work out a repayment timeframe, without feeling overwhelmed.
The best reason to use a personal loan for debt consolidation is the fact that the interest rate on these loans is comparably lower. Additionally, you can choose a new, finite loan term, giving you an end date to look forward to. You can significantly reduce the overall cost of your loan with lower rates and a shorter loan term.
A Better Alternative to Payday Loans
Are you falling short of money for a minor, but urgent expense? A Payday loan may seem like an enticing option for a stopgap, but is it worth the risk?
Payday loan lenders are infamously known for their predatory nature. This short term loan does more harm than good. With their exorbitant interest rates, which sometimes exceed 400%, these loans are fraught with peril.
On the contrary, a personal loan from the right platform can solve the same problem without costing you a bomb. Personal loans are pretty straightforward with affordable APRs and lower interest rates.
When it comes to borrowing, it is always wise to shop around and weigh the pros and cons of each offer. With us, you can do all that with just a single application form on one platform. Visit LoanTube to compare loans from multiple lenders, based on Real Interest Rates. Find your ideal secured loan or unsecured loan by comparing Real APRs.
Compare Personal Loans based on Real Interest Rates
Home Improvement expenses
Planning to take on a home remodeling project? A personal loan can help ease your financial burden. Suppose you’re expecting a baby and want to add an extra room in the house to fit the needs. You’re prepared for the toll that the delivery and other medical expenses will take on your finances. In such a situation, it’s not wise to burden your shoulders with an extra expense. A personal loan for home improvement will take the pressure off of you when you don’t have a lot of cash on your hand.
Moreover, if you don’t have home equity or don’t want a home equity line of credit, a personal loan is an ideal option. Unlike home equity products, you don’t have to use your house as collateral. This way, you won’t be surrounded by the constant risk of losing your property.
Covers Moving Costs
Moving within the same city doesn’t cost as much as moving to a different state does. But when you’re presented with an opportunity to upgrade your career, you wouldn’t want to pass on it even if it requires you to move across states.
Starting from scratch in a new city isn’t a cakewalk. The logistics and setup costs can potentially burn a hole in your pocket. These expenses cost enough to justify borrowing a personal loan. If you use a personal loan to fund these costs, you’ll be able to use a part of your savings to sustain until you get your first paycheck.
Although, before resorting to a loan, you must check whether your new income will be able to counterbalance the cost of your loan. If you contemplate this situation beforehand, it will save you the added stress of repaying your loan.
In case of an Emergency Expense
Emergencies are unprecedented. Although it is advised that you stay prepared to tackle one with an emergency fund, you can’t always count on it. An unplanned medical expense is one of the most common rationales given for taking out a personal loan. A personal loan can also cover some routine medical treatments such as dental care, cosmetic procedures, fertility treatments, etc. As common as these procedures are, some of these minor surgeries can cost you over £1000.
Another common, yet discomforting use of a personal loan is to cover funeral costs for the deceased. A loved one’s demise can be traumatic, and funeral arrangements along with home services can add to your agony. Sometimes you may not even be able to grieve in peace due to this financial stress.
As tragic as this is, one has to step up and be the voice of reason. A personal loan can help cover these unsought costs and alleviate the financial stress for the deceased’s family.
Even if you don’t commonly make extravagant purchases, some expensive items are a necessity. For instance, if you’re moving into a new house, you might want to purchase the essentials – a washer, dryer, and stove. The kitchen and laundry appliances are the sines qua non of the house. With a personal loan, you can purchase these appliances up front, instead of waiting until you can afford them. While you will pay interest and perhaps a fee, but a loan will save you the unnecessary cost of short-term alternatives like take-out and Laundromats.
If a new car is on the cards, finance your purchase with a personal loan. Not a lot of people are walking around with thousands of dollars at their disposal. But we all need a vehicle to make travel more efficient. Rather than spending a chunk of your savings in one go, you can pay in affordable monthly installments.
Though the list covers 6, a personal loan can solve a plethora of purposes, which go way beyond this list. If you have a budget in place and adhere to it, a personal loan can be a good way to financially back your projects. Having your loan spread across fixed monthly payments can give you some breathing room. All you need to do is repay the loan in full and on time. A default on your loan repayments can adversely affect your credit score.
Do a thorough analysis of your financial standing before opting for this option. If you don’t have enough room in your budget, then you might want to reconsider your decision. If you do, cut back on unnecessary expenditure to save up for loan repayments.
There is nothing wrong with using some financial help to keep up with your needs. What matters, is the fact that you use this credit responsibly.