Reasons for a Personal Loan

Eight Possibilities for a Personal Loan

A man builds a house of puzzles.

Judy L. Yaw |
Posted on Sep 12, 2019

Personal loans are available for a variety of reasons and can offer a solution for a variety of financial issues. From debt consolidation to starting a business, there are many uses for personal loans. Eight specific possibilities are as follow and are commonly used by consumers like you. 

Consolidate credit card debt. A personal loan can help you consolidate your credit card debt, which can be useful if you have a balance on a number of cards. One payment might be easier to manage, and you could lower your monthly payments. 

Consolidate other debts. A personal loan might be a good solution for consolidating various types of debts into one loan with a single payment. By consolidating your debt with a personal loan, you could simplify your monthly finances and alleviate bill-related stress. This can help you get more organized and reduce the risk of missing a payment that could impact your credit score.

Pay off medical bills. Medical bills often hit us when we are least prepared to handle them. They also can pile up, especially if you have a drastic health situation and your insurance coverage doesn’t cover as much as you’d like. If your insurance coverage still leaves you with significant debt, a personal loan can provide an alternative to help you pay off this medical debt and make affordable loan payments over time. 

Give your home a face-lift. A personal loan can be a great way to cover the cost of home improvements or repairs. If you don’t have the cash to cover these expenses, a personal loan might be an alternative over using financing through a store or vendor.

Celebrate a milestone. A personal loan could provide the cash you need for milestones such as weddings, anniversaries, birthdays and graduations. It may not be the best idea to go into debt to finance milestone events, but a personal loan may be preferable to other forms of high-interest debt such as a credit card.

Pay for School. You or a student in your life may need funds to pay for tuition, books, room and board, or other expenses related to education or training. Many financial institutions offer special loans specifically for students and parents to help pay for today’s education or training for a better tomorrow. 

Finance a car purchase. A personal loan could be a better alternative than a traditional auto loan. Auto loans are available from sources such as banks and car dealers. They are a good choice in many cases. However, it’s still worth checking to see if you can do better with a personal loan on the rates and terms.

Start a business. Depending on the type of business, there might be a need to purchase equipment, lease office space, or provide some working capital while operations get underway. A personal loan may be a viable and beneficial option to kick start your new business idea.

Remember, while you can use personal loans to pay for these possibilities and others, it’s still always a good practice to budget and save money for anticipated expenses such as vacations and home improvements. Additionally, an emergency savings fund can address those unanticipated expenses in life. Personal loans are simply another option to help you meet your financial goals when you don’t have cash in hand.

No matter what your needs are, whether it is a new car, your college education, making room for your new baby, or your dream vacation. We have the loan to make it happen. Click here for more information on personal loans.

Picture of Judy Yaw

Judy L. Yaw
Community Banking Manager for the Littlestown Office