Personal loans have reached an all-time high of $138 billion, $92 billion more than only 8 years ago in 2011.
Wondering about this type of loan? Then here are five good reasons to apply for a personal loan.
1. Debt to Income Ratio Skyrocketing? Consolidate It!
Revolving credit card debt is crippling. You feel like you’re drowning in just minimum payments, which will keep you paying on those cards for, well, forever.
A personal loan is a great way to pay off your credit cards and give yourself a more feasible payment each month at a lower interest rate. Quick loans eliminate the burden of the 29% interest card you have looming over your head and let you breathe easier.
Freeing up credit cards allows you a plan for emergencies and helps build your credit score. Win, win.
2. Let’s Move Cross Country
Moving is one of the most expensive endeavors. Between labor, trucks, boxes, first and last month deposits, and realtor fees, the cost is sometimes insurmountable.
Applying for a personal loan to cover those moving expenses gives you the capital you need upfront and allows you grace in paying it back over a longer term. Moving doesn’t mean you have to wipe out your savings account.
3. The Roof Caved In
Do you have the money to cover a sudden hole on your roof? Water heater exploding? Totaling your car due to your own negligence?
The odds are, you don’t. With 78% of American workers living paycheck to paycheck, there’s hardly enough to go around now. Let alone extra to pay for unexpected catastrophes.
This is a great reason for a loan request. It gets you out of the lurch and doesn’t mean your power goes out in the process.
4. Here Comes the Bride, or Groom; Weddings Are Expensive
In case you’ve been living under a rock, the times are gone when the bride’s family will foot the bill for the wedding. Most couples have to cover their dream weddings all by themselves.
This is daunting for a young couple starting out. The average wedding costs upwards of $30,000 in the US. Where is that money coming from if you’re part of that paycheck to paycheck 78%?
Weddings are one of the top reasons to take out a personal loan. They let you have an amazing day and wonderful memorable honeymoon, all while letting you maintain some cash for the soon-to-be little one’s college fund.
5. It Takes Money to Make Money
Use a personal loan to fund your new business idea. Going into business for yourself isn’t cheap. It can take some companies years to get into the black.
Apply for a personal loan to foot the bill for all the initial overhead of starting your own business.
Be Strong, Be Wise: Have Good Reasons to Apply for a Personal Loan
Whatever your reasons to apply for a personal loan, make sure they’re good ones. Make sure you’ll be able to afford the monthly payments.
The worst case is to get a loan to help you financially and realize it’s more of a burden once it’s done.
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