In the United States, there are currently over 21 million personal loans taken out by Americans.
Considering many of us live from paycheck to paycheck, we do occasionally need a little financial help to reach the milestones we’re aiming for. While some of us are lucky enough to get money from loved ones, others aren’t as fortunate. If you’re in the latter category, you might be looking at other options, such as personal loans.
Is a personal loan a good idea? Well, it depends on what your situation is. Let’s take a look below at some instances where it’d be advantageous to apply for one.
You Have Medical Bills to Pay
All it takes is for 1 medical emergency to happen, and your debt skyrockets. We can do everything we can to avoid getting injured, but as we all know, accidents happen.
If you don’t have a nice emergency fund stashed away, then medical bills can be devastating. But if you apply for and get a personal loan, this can be a fantastic way to relieve this financial burden.
You Need Renovations in Your Home
Your home should be somewhere where you feel safe and comfortable. It’s inevitable that things will start breaking down, so you may be at a point where you can’t ignore things anymore.
If you don’t have enough money to pay for renovations, this is where a personal loan can be a good idea. It can help you fix things that will cost you much more in the long run if you don’t have them addressed promptly.
In the end, you might actually end up more money than had you tried to put off these renovations for any longer.
You Want to Consolidate Your Debt
Maybe you have a bunch of existing debt spread out all over place. Not only is it really hard to keep track of, but you’re probably also paying very high APRs on them.
A personal loan can make things a lot simpler. Take one out to pay off everything, or as much of your debt as you can.
Then, all you have to do is pay 1 source of debt off. Plus, you can usually enjoy a very low APR or even 0% interest during the first year, which can help you save a significant amount of money.
To find out more about debt and personal finance, this company has some great advice.
Is a Personal Loan a Good Idea? It Can Be
So is a personal loan a good idea? It definitely can be.
If you’re responsible with money, know that you’ll have a steady stream of income, and have a huge life event coming up, then it can be something great to pursue. But if have a tough time with finances, plus you don’t have regular income coming in, then it may be something you want to hold off on.
If you want to read more on finance, then be sure to check out our other blog posts!