In many cases, getting a personal loan can be a very wise and financially responsible decision. From helping you consolidate your debt to paying unexpected medical expenses, here are five instances where small personal loans help you set yourself up for success.
1. Improve Your Credit Score
On average, having credit card debt will hurt your credit score more than debts from a personal loan. It will also be more costly in terms of interest rates. While going into debt should always be avoided if possible, using a personal loan to pay off credit card debt can be a wise choice if you are already in debt and unable to pay it off with other means.
2. Pay Medical Expenses
Sometimes, unexpected medical emergencies come up. Even if you have good insurance, these emergencies can often be quite expensive. For example, the average emergency room visit in the USA cost $1,233 in 2014, and prices have only gone up since then. In situations such as this, it is important to pursue the best treatment possible, regardless of the financial cost. If you're unable to pay for this treatment up front, though, small personal loans are an excellent option to consider.
3. Repair Your Home
Home repairs are like medical expenses in that they can often come up without warning. Whether you need to replace your hot water heater, fix your air conditioning, or make any other number of repairs that require immediate attention, you may not be able to wait until you have saved up the money to address them. In these cases, using a personal loan in order to fund your home repairs is a great idea.
4. Consolidate Your Debt
Consolidating your debt has a number of advantages. For one, if you have multiple credit accounts, consolidating your debt under one account can eliminate a lot of the stress and hassle that comes with the territory of having to manage several different accounts. Since many credit cards also charge much higher interest rates than the rates you will pay with a personal loan, using small personal loans to pay off your credit card debt can greatly reduce the amount of money you have to pay in interest. For these reasons, taking out a personal loan to consolidate your debt is a sound financial strategy. If you would like to learn more about consolidating your debt, check out this link.
5. Further Your Education
In order to achieve your goals, you may need to further your education. As you're probably well aware, though, education doesn't come cheap. If you want to go to college, take online courses, achieve some sort of certification or training, or further your education in any other way, you may want to consider taking out a personal loan.
In several instances, taking out small personal loans can be a financially responsible decision that will set you up for success in a number of ways. If you would like to learn more about how to put a personal loan to work for you, we invite you to contact us today.
This article is intended to be a general resource only and is not intended to be nor does it constitute legal advice. Any recommendations are based on opinion only.
Rate, terms and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval.