Benefits of a Personal Loan

6 ways a personal loan can improve your life

There is a lot of shame and stigma associated with taking out personal loans. We think this is morally wrong because taking out a personal loan is no different from getting a mortgage. 

Today, we are going to talk you through 6 different situations in which taking out a personal loan can improve your life. Taking out a personal loan doesn’t mean you are bad with money, it just means that you have found yourself in an unexpected situation.

#1 – it can help you pay the bills at the end of the month

The price of living life really adds up, especially if you get paid anything below the living wage. Which is the case for most of us – did you know that the minimum wage in most states is $6 p/h below the living wage? 

Some months end up being more expensive than others, and you may find yourself in a position where you won’t be able to pay your bills when they are due. 

This is the perfect time to take out a personal loan so that you will still have water and electricity next month. In this situation, choosing a personal loan is the right choice. 

#2 – it can help you pay your rent

This situation is very similar to the one situation above. There are many reasons why we sometimes can’t make the rent at the end of the month. 

Maybe our pet has been ill and we have had to pay extortionate amounts for their treatment. Maybe we have had to buy the kids new uniforms. Maybe gas prices have gone up. 

Whatever the reason, taking out a personal loan to keep a roof over your children’s heads is the right choice. A personal loan can help you to keep you in your home. 

#3 – it can help you buy a car

Have you ever found yourself in the following situation? 

You need a car to get a job. But you need a job to be able to afford the financing on a car. But you cannot get a job if you don’t have a car… 

It’s frustrating, isn’t it? 

This is a situation where a personal loan can make a huge difference in your life. You can use your personal loan to buy the car outright to put down or to put a large deposit on it. Then once you have the job you can start paying back the loans. 

Personal loans even offer better interest rates than car financing sometimes. 

#4 – it can help you consolidate your debts

If you have multiple other loans and credit cards, every month you will be making payments (with interest) on multiple loans. This can get really expensive if each loan has a high monthly payment. And the interest rates can really add up. 

If the situation above sounds painfully familiar then you should consider consolidating your debts by taking out a personal loan. Use the loan to pay off all your other debts. Then you will only be making one set of monthly payments and paying one interest rate. 

You will find that this is a lot less expensive than paying off multiple debts at once. 

#5 – it can help you out in an emergency situation

Sometimes we find ourselves in a situation that we haven’t prepared for. 

Our car breaks down, a tree falls on our house, our partner breaks their leg, our neighborhood floods. All of these situations are out of our control but they are expensive. A lot of situations aren’t covered by insurance and a lot of us can’t afford to take insurance out on everything. 

In a situation like this, a personal loan can help you keep your and your family’s life running smoothly, no matter what life throws at you. 

#6 – it can cover moving expenses

Most people don’t know that a deposit isn’t the only thing that you will need to save up for if you want to buy a house. You will also have to pay estate agent fees and legal fees that can cost thousands of dollars and aren’t refundable if a sale falls through. 

If you want to get on the property ladder and have saved for years to get your deposit, you might not have the patience or the time to save up for the legal fees as well. Take out a personal loan, and pay it back with the money you are saving by no longer renting.