6 Good Uses for a Personal Loan
Even the most careful of investors and planners can sometimes get caught off guard by life. In those moments, a personal loan can really make a difference. We've compiled six ways a personal loan can be helpful.
Credit Card Debt Consolidation
Individual loans do not require collateral and may have lower interest rates than credit cards. By setting terms, you'll pay off that debt much faster than you would by making the minimum payment on other debt. That's why a personal loan can be a worthwhile option for consolidating higher-interest credit cards. Make sure the rate you will pay on your personal loan is lower than the rate on your credit cards.
Simplify into One Payment
Missing a payment on a medical, dental, veterinarian, or any other bill can severely harm your credit. In the event that you have several high-interest credit payments each month, it may be beneficial to consolidate the debt into a single payment personal loan.
Make Much-Needed Repairs
In case your emergency funds have run out, a personal loan can help you finance necessary repairs to your car, home, or backyard if you don't have the funds.
Lower Your Energy Bills
If you're spending more than you should on heating and cooling, you might have a problem with your home's weatherization. A personal loan can be a smart way to afford attic insulation and weather stripping around the windows and doors of the house. You will also likely end up saving money in the long run.
Pay Everyone Back
Occasionally, you may need to borrow money from friends and family members. The good news is that you have the option of getting a personal loan to pay them back. They'll appreciate the cash returned, and you'll feel less awkward around them.
Pay Your Taxes
You can use a personal loan to pay your state or federal taxes (or both) if you owe them. Even better, you can make the loan amortized by next year's tax season.
Make Informed Decisions About Your Finances
We recognize that mastering money and finances is a continuous journey. That's why we want to provide you with the tools to create a bright financial future. No matter where you are in your financial journey, there is always room to learn. Visit our Financial Wellness page for more articles and resources on a variety of financial topics.