Some people’s view of personal loans are unpleasant where they think that having a loan would place you to a more serious problem in the long run but why do we have to apply for personal loans?
8 Reasons to Get Personal Loans
There are a lot of reasons why we have personal loans aside from just having extra cash when we need it such as the following:
Helping Family and Friends
There are a few situations where a family member or a friend asks you for financial assistance, and you can’t just ignore them. The most common reason they borrow money from you is that of a medical problem hence it is difficult for you not to extend some help to them.
In this situation, the best thing that you can do is to look for a Loan Advisor: Top 10 Licensed Money Lenders in Singapore who can give you a personal loan or payday loan that you can easily manage with its flexible repayment. Monthly repayment of $100 to $200 is already a great deal for loan repayment.
Renovation Expenses Extra Funds
Thinking about your next home renovation project for the next year but couldn’t find the budget to complete? Taking out a personal loan can help your home renovation plans left unfinished.
In this case, a personal loan would be essential where you can borrow the amount of money you need to add to your renovation and finally complete your home renovation smoothly.
To Maintain a Safe Level of Funds
Have you planned to go on a holiday vacation and you have finally come up with the money you needed for the trip? Going on a holiday would require you a big amount of money. Let’s say you have saved $10,000 for your vacation; is it practical if you’ll pay this lump sum of money all at once?
There are still a lot of things where we can put this amount of money such as to save for emergency purposes or simply put it onto your savings account for future use hence there are a lot of people who would go on a vacation using loaned money which they can pay on a monthly basis rather than paying it with a lump sum money that you can make use of on a more important family or personal emergencies.
To Help with Wedding Expenses
Weddings do only happen once in a person’s life hence everyone wants their wedding to be the best that is why we spend too much on weddings. Wedding expenses are surely massive which starts from the wedding ring, reception and many more.
One of the most expensive item in a wedding is the wedding ring so there are couples who would want to pay their wedding ring through credit card that could charge them for up to 24% interest rate every year which is indeed higher compared to getting a personal loan where they have the chance to choose a good repayment terms and interest rate they can afford.
Consolidate Unpaid Debts
After having several debts, some of you are now having trouble managing them hence getting a personal loan for you to pay all your debts is a good idea. It would be easier for you to track all your debts using one personal loan rather than having several debts that you can’t handle and manage anymore.
Avoid High-Interest Rates from Your Credit Card
Most of the items you purchase using your credit cards have high-interest rate, and if you didn’t settle them on time, the interest would go higher and higher over time. Applying for a personal loan to pay your debts is not that bad.
Personal loans have good repayment terms where you can decide how much you can pay the moneylender monthly hence you won’t be burdened with too big monthly repayment and get you out from all the financial stress.
Avoid Insurance Claims
Insurances have many policies and bonuses especially if you aren’t able to file claims for a period of time, but they also have their moratorium policy which happens if you haven’t made any claims for five years.
In this case, policyholders opt to have personal loans so that they can make repayments and retain their bonuses and discounts from the insurance company.
Cover Those Late Payments
As an employee, there are times when your company pays you late with your salary, and it would be difficult for you to find money for your daily needs and expenses. In this instance, a personal loan would be a great solution to your problem.
When applying for a personal loan, you can choose the amount of money you can borrow, and if you just wanted to survive for a few days until you get your salary, you may choose to loan a small amount of money which you can easily repay either on a monthly or daily basis.
As we can see, a loan also has its benefits and advantages that a lot of us don’t realize hence people shouldn’t be terrified or embarrassed when having loans.