Personal Loans Are for More Than Just Emergencies
If you believe a personal loan is only for those who are amid a financial crisis, you’re wrong. Taking out a personal loan could be the right choice for many different common scenarios that you might be facing, none of which involve emergencies. When taking out a personal loan, it is important to keep in mind that you will be taking on debt. However, a personal loan can be an extremely useful tool for many beneficial, non-emergency reasons.
Still trying to decide whether a personal loan is right for you: check out these five common reasons why people choose to go this route:
- Debt Consolidation
Debt consolidation is a way of combining multiple streams of debt from multiple creditors. The main benefit of this is that instead of having to keep track of paying several different creditors, you just pay one. The goal of debt consolidation is to get your interest rate as low as possible and/or lower than your current interest rates. Although you might not find a lower interest rate, you still benefit from only having to pay one lender on a monthly basis.
- Home Renovations
Have you been wanting to update your kitchen, put in a swimming pool or replace your roof? When it comes to renovations, additions, and repairs to your home, a personal loan has been a common go-to for many homeowners. With personal loans, you don’t use the house as collateral, which is good for homeowners without much equity in their home.
- Education
Let’s face it — colleges and universities can be very costly. You incur expenses such as tuition, housing, books, and much more while in school, and in many cases, you’re still paying for them well after graduation. Unlike a student loan, a personal loan is not as restrictive and is not secured against any asset. If you need money to cover costs that aren’t covered under the confines of a student loan, then a personal loan with a lower interest rate is a good option. Keep in mind, using a personal loan to pay off a student loan will likely cause you to lose one of the major benefits that come with a federal student loan, known as delayed payments or forbearance.
- Medical
Although you may not have existing medical debt, many people opt to take out a personal loan to cover planned medical procedures such as dental work or plastic surgery. Some of these procedures and preferred practitioners might be out-of-network, have high deductibles, or they may be cosmetic or optional procedures that may not be covered by your insurance.
- Major Life Milestones
Landing a new job in a state that’s thousands of miles away will bring about the major expense of moving, and if you don’t have the cash to cover it, a personal loan could help you make a smooth transition to your new life. Other major milestones that are prominent reasons for taking out a personal loan include weddings and family expansion, including fertility treatments or adoption.
Is a Personal Loan Right for You?
That question can best be answered by only you; but for many, a personal loan is a responsible way to pay for expenses that you don’t immediately have the cash for. If after reading this, you have decided a personal loan is the right choice for you, consider Brother Loan & Finance for your personal loan needs.
At Brother Loan & Finance and our sister companies, CRF & CLS, we pride ourselves on educating you on your loan options. All our loan products have a flat APR and standard terms (often 6 months) to provide you with the absolute best financial flexibility. We don’t perform a credit check; your job is your credit! We can think of many reasons why a personal loan is the perfect choice for those with room in their budget; plus, by choosing us, we can also help strengthen your credit.
Our loans do not include any application fees, origination fees or prepayment penalties, which further sets us apart from other lenders. To learn more about how our loan options can help you, visit our website or call us today!
Grace Neville has devoted over 30 years to creating innovative and customer-centric lending programs, growing a single local loan store to over a dozen community locations in three states. She is passionate about teaching financial literacy to professionals and consumers.