Personal loans can be a fantastic idea for the right person and for the right reasons. If you can get a favorable personal loan agreement, you can reap some fantastic benefits from doing so. Here are 5 reasons why you should get a personal loan!
Reason One: Debt Consolidation
Debts can be really stressful and seriously affect your life. Your mental health can be negatively impacted through huge stress, worries and sleepless nights. Unfortunately, debts are commonplace in the modern world. Whether that be due to falling on hard times or through human error, we may end up in debt at some point. Most people have some form of debt, whether that be a mortgage, credit card or loan – and that’s actually beneficial to our credit report if we continue with regular payments.
It’s when debt becomes overwhelming and unmanageable that it becomes a problem – and when this happens, a personal loan to consolidate various other debts is a fantastic idea. It allows you to pay off all of your outstanding debts and effectively have one large debt to pay off in certain agreed terms on the credit agreement. By compiling all your debts into one, you can avoid paying huge interest payments on some other debts (such as credit cards) so this will save you money! It also gives you an agreed payment date, so this type of personal loan can actually help organize your finances. Most credit cards aren’t for long term borrowing, whereas a loan is normally an agreement to be paid over a number of years, which can seriously help people struggling with their finances.
It’s important that if you take out a personal loan for debt consolidation, that you do the following:
- Ensure you’re using the money on your debts ONLY. Do not take the money and avoid the debts, as this will just make your debt situation worse.
- Do not rack up the debts again on your, now paid, credit cards if applicable.
- Try not to apply for more credit for a while unless essential.
- Ensure the terms of the personal loan are favorable to you and you can afford them.
- If you take out a loan over a number of years and your circumstances change, you get in contact with the lender immediately.
If this sounds good to you, why not take charge of your financial situation with one of CreditNinja’s personal loans!
Reason Two: To Pay For The Big Day
Wedding costs have consistently increased, and on average in the US can now be nearly as much as $30,000. A lot of happy couples don’t have this sort of cash in their pockets but still want to get married – a personal loan can help them do this!
If you’ve got a joint bank account, you can have a personal loan that is paid from that account – ensuring that one of the couple isn’t being unfairly charged!
Reason Three: It’s Time For A Vacation
Vacations are needed. They’re essential in allowing us to unwind and take time away from our busy schedules of work and family commitments. The problem is, vacations can be expensive – particularly in the most relaxing of places!
A personal loan can help you afford a much deserved and much needed vacation!
Reason Four: You Need A Car
Cars are essential for some of us. We need to get around and we definitely need to get to work or the store! Cars don’t come cheap though, and sometimes a personal loan to buy a car can have advantages over financing!
A personal loan can allow you to outright purchase a car, making you the sole owner, whereas a finance deal will only allow you to be the owner after your final installment. For those that live with anxiety, they may feel more comfortable outright owning a car rather than worrying about getting involved in an accident or losing the car through theft and still having to pay!
Reason Five: A Funeral
A funeral is a devastating affair, and it can be made even worse through the massive price tags that they come with. Funerals can run up into the thousands of dollars and in such a sad and stressful time, it’s not needed for you to have to try and raise the money in such a short time.
Is A Personal Loan Right For Me?
Personal loans are a fantastic alternative to payday loans which normally come with outrageous interest rates. They can also be a great alternative if you’ve mounted a huge credit card debt. Credit cards might have a variable rate of interest, whereas a personal loan will have a fixed interest rate over a fixed period of time.
The key thing to remember is that whatever credit you are issued, you must stick to the payments and always pay in full on time. If you fall into arrears or refuse to pay, your credit report will be negatively impacted and you might find it much more difficult to obtain credit in the future, or will be offered unfavorable rates.