Loans are great. If you want to buy a new car or house, chances are you’re going to need help financing it. This is one reason to love loans. Personal loans are a bit different though. You can use a personal loan for a variety of different reasons. Maybe you want to buy a boat. Maybe you want a guitar-shaped swimming pool. Whatever reason has you considering a personal loan, there are always risks. Like an auto loan or home loan, your lender would prefer you pay it back and do it on time. So take your time deciding on it before you commit to something you’ll regret later. Here are three good reasons to consider a personal loan…
An emergency arises: These days, who knows what’s going to happen next. Aliens making contact wouldn’t exactly surprise me at this point. But while I can’t guarantee that’s ever going to happen, I can guarantee that something will come up at some point that will have you clutching your wallet. Hopefully your emergency fund is in good shape, but if the emergency is health related, you may end up with a hospital bill larger than you could have ever dreamed of. If that happens, it’s an understandable reason to take out a personal loan.
Your credit cards have come to life: If your credit cards ever speak to you, seek out a psychiatrist. But seriously, some folks accumulate credit card debt at levels that seem almost impossible, so if their cards aren’t buying things for themselves, they must be sleep-shopping. Having a pile of debt and handful of card payments to make every month can be a bit much, so if you’re finding yourself in a similar, near-insurmountable situation, a personal loan could be the answer for you. You can use it to pay off your credit cards, the loan will probably have a far-better rate, and you’ll only have to make one payment each month until you can pay off the loan.
You’re moving: Whether you’re relocating or just looking for a new house in your town, moving can be expensive. Even if you foresee making some good cash on the sale of your current home, trying to sell one and buy another can be a difficult scale to balance. Maybe you don’t want to miss out on your dream home even though your house isn’t quite ready to be put on the market. This can be tricky and you may need some cash to make it all happen. This is yet another good reason to consider a personal loan. Far better than a guitar-shaped swimming pool.