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Good Reasons for Personal Loans
24 Feb 2019

Smart Money: 5 Good Reasons for Personal Loans

Credit card debt can be crippling in your monthly budget. All those payments and due dates. It feels like they might never get paid off. How did you do this to yourself?

More importantly, how do you fix it? Personal loans offer the solution you might be looking for. Personal loans no credit check are unsecured loans meaning you do not have to have collateral to get them. The loans are at a fixed interest rate, over a set period of time, and for a set number of payments.

Check out these good reasons for personal loans. One of them might help your finances.

1. Debt Consolidation

A good reason for a personal installment loan is debt consolidation. If you have many different loans all with varying rates and payment schedules, consolidating them into one loan can a smart idea.

Why will a personal loan be a good choice for debt consolidation?

  • lower interest rate if you have good credit
  • one payment versus many payments
  • easier to plan for paying off

2. Reduce Credit Card Debt

The average American carries over $5,000 in credit card debt. If any of that debt comes from cards with higher rates, a personal loan is a smart choice.

A personal loan would allow you to pay off those credit cards. Then have one monthly payment at a rate that is better than the rates of the credit cards.

It will also help if you are struggling to keep up with all those payments, by combining into one payment each month. This ensures you can make your payments on time and take care of your credit score.

3. Major Life Event

Let’s face it – life can be unpredictable and expensive. Some reasons for a bad credit personal loan might include those big life events.

Paying for a wedding is a big expense and it comes all at once. It can be difficult to save such a large amount for that walk down the aisle. A personal loan would help to cover the many wedding related expenses like caterers, hall venue and photographer.

Funerals are expensive and can be unexpected. Let’s say the estate of the deceased does not have the money to cover a funeral.  A family member could opt for a personal loan to cover expenses like the casket, flowers and undertaker fees.

4. Medical Expenses

Medical expenses are another good reason for a personal loan. The bad credit loan could do two things.

First, it could cover the initial cost of a medical procedure. Orthodontics or fertility treatments are examples of medical expenses that come with a big price tag and may not be covered by insurance.

Second, a personal loan could be used to consolidate medical expenses. If you have been ill or injured you likely have expenses from a variety of sources. Getting a personal loan would allow the peace of mind to consolidate these debts and pay them over time.

5. Home Remodel

Does your roof need to be replaced? Did your furnace die in the middle of the winter and new one is necessary? A personal  no credit check loan would take care of these large ticket items for your home.

Good reasons for personal loans? What if you don’t have enough equity in your home for a home equity loan or you don’t want to use your home as collateral? You can improve your home while paying it off over time with one payment.

You might even a better rate than with that home equity line of credit.

Good Reasons For Personal Loans: Decide With Care

Personal loans offer an option to manage your finances and life’s expenses. Consider carefully whenever taking on debt whether it is a good choice for you.

Good reasons for personal loans are many. Give yourself some freedom from your other debts. Make the decision to get a personal loan and works towards better financial health.

Contact us today for more information about whether a personal loan will work for you. Here are some other articles that might be helpful:

Loans for people on disability – the lowdown
Bad credit student loans no credit check
The pros and cons of payday loans
Can payday loans garnish your wages?