3 Benefits of a Personal Loan

When there’s something you need or want, you have plenty of options when it comes to finding the money to pay for it.

We can choose to:

• Save up the money
• Use our existing savings
• Use a credit card
• Take out a personal loan

There are several reasons why the best option here is to take out a personal loan, even just by considering the alternative options.

• It could take years to save the money, and many of us aren’t great at maintaining savings discipline anyway. It’s also likely that the price of whatever it is you want will go up meaning your savings target will keep moving.
• Using your existing savings might seem like a good idea, but as we’ve just mentioned would you have the discipline to save a nest egg once again?
• It’s easy to use a credit card, but if you’re buying something expensive it’s highly unlikely you’ll be able to repay the full balance immediately, meaning interest will quickly start adding up and your balance will only reduce slowly.

Now we’re left with a personal loan. With a personal loan you always know where you’re at with your payments, you don’t have to use your savings, and because of the structure of a loan you have an end date for repaying, unlike a credit card when you could be making repayments for the rest of your life.

Here’s a look at three ways you might benefit from a personal loan.

Debt Consolidation

A desire to consolidate debts is a common reason to take out a personal loan. Whether you have debts spread across a collection of credit cards, an existing personal loan, or some other debts that you’re struggling to keep up with, debt consolidation may be of benefit to you.

A debt consolidation loan isn’t just for those who are struggling with keeping up with all their repayments. You might simply find it a hassle to have to manage so may payments leaving your bank account throughout the month.

When you choose a debt consolidation loan you clear all your existing accounts and make one repayment to the loan provider instead. This makes it much easier to manage your finances, and you’ll usually find that you save money and clear your debts quicker, particularly if you have credit card debts or other revolving credit where the interest and fees keep racking up.

Home Improvements

Home improvements a great way to both improve your lifestyle and increase the value of your property. Home improvements, particularly if you’re embarking on a large project such as a full internal renovation or the installation of a swimming pool, can easily run into costs totaling tens of thousands of dollars, so such projects are ideal for taking out a personal loan.

That said, when you use a loan for home improvements you don’t need to be looking at one of these huge projects. You might simply want to redecorate a couple of rooms or replace all the furniture in your house. Even the smallest things can make a difference around the home, and why wouldn’t you spend the money on a place where you likely spend most of your time when you’re not at work?

When you use a personal loan to fund home improvements you can guarantee contractors that they’ll be paid and not have any worries about funding your projects. Ideal if you’ve been thinking about home improvements for years but have never had the cash to do anything about it.

Medical Expenses

Deciding to undergo cosmetic surgery is another great way to achieve a confidence boost and enhance your lifestyle. At the same time, you may also have medical expenses that come out of nowhere and require you to find the money to fund them.

A personal loan that covers your medical expenses, whether for cosmetic improvements or emergency treatment, ensures you can get what you need and also ensure you’re not stressed out at where you’re going to get the money from. Should you require a medical loan for cosmetic surgery you can even visit clinics and get quotes ahead of time so you know exactly what you need to borrow.

Whether you’re looking at breast augmentation, cosmetic dental improvements, or require emergency medical treatment, a personal loan can help you to cover your costs.

How Will You Benefit?

How will a personal loan benefit you? Remember these are just three ways you can benefit from a personal loan. Consider how a personal loan can make a difference to your life. Get in touch now to begin the application process.

This BLOG was supplied to us by our friends at NOW Finance. NOW Finance is a specialty personal loan provider.  Now Finance is a trademark of Wingate Consumer Finance Pty Ltd ACN 158 703 612 Australian Credit Licence Number 425142.