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08 Nov 10 ways a personal loan could help you

Posted at 13:30h in Financial Tips by
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Getting a personal loan can help you in several ways, depending on your financial situation and how you use the funds. Here are some common reasons people opt for personal loans and how they can be beneficial:
  1. Debt Consolidation: If you have multiple high-interest debts, such as credit card balances, personal loans can help you consolidate these debts into one loan with a lower interest rate. This can make it easier to manage your finances and potentially reduce your overall interest payments.
  2. Emergency Expenses: Personal loans can be a financial lifeline in times of unexpected expenses, such as medical bills, car repairs, or home repairs. They provide quick access to cash when you need it most.
  3. Home Improvement: If you’re looking to renovate or repair your home, a personal loan can provide the necessary funds to make those improvements, which could increase the value of your property.
  4. Education: Personal loans can be used to fund educational expenses like tuition, textbooks, or other educational resources. They might be more accessible than specific student loans in some cases.
  5. ‘Big ticket’ purchases: You need a little help to make that dream purchase of a classic car, motorbike, jet ski, or boat. Whatever that dream buy is, a personal loan can help make it a reality sooner.
  6. Travel: Personal loans can be used for travel expenses, allowing you to take that dream vacation or explore new destinations.
  7. Weddings: Wedding costs can add up quickly. Personal loans can help you cover the expenses related to your big day.
  8. Credit Building: If you have a limited credit history or need to improve your credit score, successfully managing a personal loan can positively impact your credit report.
  9. Unplanned Opportunities: Sometimes, investment opportunities or financial opportunities arise unexpectedly. A personal loan can provide the necessary funds to seize these opportunities.
  10. Improving Cash Flow: Personal loans can be used to manage cash flow issues or cover short-term gaps in your finances.

A client chose a personal loan to help them renovate their home

We had a new client referred to us this month who wanted to undergo renovations to their kitchen and bathroom, and didn’t have the available equity in their house to do it from a home loan refinance.

We were able to secure them a great personal loan rate and have $50,000 transferred into their account so they could start their renovations, and manage the payments to trades themselves throughout the process.

TOTAL LOAN AMOUNT: $50,000.00

TOTAL TURN AROUND TIME: 4 business days

Terms & Interest rates

It’s important to remember that while personal loans can be helpful, they also come with terms and interest rates. Here are some considerations before getting a personal loan:
  • Interest Rates: The interest rates on personal loans can vary widely. Your credit score, income, and the lender you choose can all impact the rate you’re offered.
  • Repayment Terms: Personal loans come with fixed repayment terms. Make sure you understand the repayment schedule and can comfortably meet your obligations.
  • Fees and Charges: Be aware of any origination fees, prepayment penalties, or other charges associated with the loan.
  • Credit Impact: Taking on a personal loan affects your credit, and how you manage it will impact your credit score. Make sure you can handle the monthly payments.
  • Budgeting: Before taking a personal loan, ensure that you have a clear plan for how you’ll use the funds and a budget for repaying the loan.

If you want to know more about how a personal loan could help you in your situation contact us today.