15
SEP
2018

What You Should And Shouldn’t Use Personal Loans For

money-and-timeUsing Personal Loans Correctly

There are a variety of things you can use personal loans for and they are much easier to secure than home equity loans, mortgages, and other bank loans. Personal loans can be used for almost anything. Depending on your lender, there may be some restrictions, but for the most part, you are free to use the personal loan in any way you see fit. Here are a few ways people often use their personal loans.

Debt Consolidation

It’s hard to carry debts on several credit cards and keep track of them with their various high interest rates and due dates. You might have debt in other areas as well and getting a personal loan to pay them all off at once makes things much simpler. Instead of having loans all over the place, you have one loan to pay per month. It’s easier, the interest rate is lower, and you’ve gotten your other lenders off your back.

Home Renovations

Remodeling a portion of your home can be very expensive and you can get an unsecured personal loan to cover the costs for you. Some people also try for a home equity loan if they have been in their home long enough to have equity, but it’s always faster and often easier to get a personal loan to use for any reason.

Vacations

Vacations aren’t always cheap and when you really want to hit the road (or the skies) and have a grand vacation, a personal loan can help you do that. Get your family on that plane, cruise, beach, or wherever else and enjoy some time together as a unit.

Emergency Payments

If you or someone in your family lands in the hospital or has unexpected medical bills, those things have to be paid or you’ll have debt collectors hounding you at all hours. Rather than try to pay the minimum and get by, it might be better to get a personal loan, pay off the medical bills, and then pay down your personal loan a little at a time.

Unexpected Repairs

As much as you try to keep track of what your home needs, you never know when you might have a burst pipe, a leaky roof, or something else that has to be fixed right away. You plan for the big maintenance items, but when something unexpected happens, a personal loan can help you get through a rough spot.

Not For Business

You may or may not be able to use a personal loan for your business. You might be required to take out a business loan in order to get the funding you need so if you are looking into personal loans for business purposes, ensure that the funds can be used in that manner. Other than business requirements, there are very few things you can’t use a personal loan toward.

Get Personal Loans When Needed

If you have questions about personal loans and other ways you can use them, or if you’re ready to apply, contact Champion Financial for help.

 

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