6 Good Uses for a Personal Loan
Life can catch even the most prudent savers and planners off guard once in a while. It’s during those moments that a personal loan can really come in handy. Here are six good uses for a personal loan.
1. Credit Card Debt Consolidation
Personal loans don’t require collateral and the rates are often lower than those found on some credit cards. Plus, set terms mean you’ll pay off that debt far faster than you would by making the minimum payment on other debt. That’s why a personal loan can be a great option to consolidate higher interest credit cards. Just be sure the rate you will be paying with the personal loan is lower than your credit card debt.
2. Simplify into One Payment
Missing a payment for a medical, dental, vet, or other bill can seriously damage your credit. If you have several high-interest credit payment to make each month, try consolidating the debt into a single payment personal loan.
3. Make Much-Needed Repairs
Whether it’s your car, home, or back yard, a personal loan can help you finance necessary repairs when emergency funds are depleted.
4. Lower Your Energy Bills
If you’re spending more than you should on heating and air conditioning, you might have some issues with your home’s weatherization. Using a personal loan can be a smart way to afford new insulation for the attic, as well as weather stripping around windows and doors. Plus, it could save you money in the long run.
5. Pay Everyone Back
Sometimes, borrowing money from friends and family is necessary. With a personal loan, you can pay them back. They’ll appreciate the returned cash, and you won’t have to feel awkward around them anymore.
6. Pay Your Taxes
If you owe state or federal taxes (or both), a personal loan can be a great way to pay them. You can even set up the payments so that the loan is paid off by next year’s tax season.
Rivermark offers personal loans with competitive rates and terms, along financial wellness resources to help get your budget in line with your monthly income. Come by any branch or give us a call at 503.626.6600 or 800.452.8502.
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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.