Are you cash strapped, living paycheck to paycheck, in need of financial relief, and wondering what is a benefit of obtaining a personal loan? Read on!
The median American household has just shy of $5,000 sitting in their savings account. In case you haven’t weighed how much things cost these days, that’s not a lot of money.
For your reference, a roof that needs repairs or a replacement could run you as much as $14,000.
Given the fact that most Americans aren’t flush with cash but are flush with needs, loans have turned into a reliable means of propelling people’s lives forward. So, what is a benefit of obtaining a personal loan?
Here are a handful of specific things that people look to obtain by borrowing money.
1. Consolidating Credit Cards
When you’re carrying multiple loans from a variety of credit cards at bad interest rates, you’ve got two options: Pay your debt off or consolidate it. Since paying your debt off in one swoop is a challenge, consolidating is a great second option.
Debt consolidation is when you get a lender to buy out all of your existing debt at better terms. That way, you’re paying less each month to one person as opposed to more to multiple entities.
2. Stopping Credit Card Harassment
Have you ever fallen behind on your credit card payments to the point where you were sent to collections? If you haven’t, let us tell you that it doesn’t make for a fun experience.
Collection agencies are run by third parties and can harass you at home and even at work until they’re paid back.
That’s why when people ask us, “What is a benefit of obtaining a personal loan?”, one of our favorite answers is peace and quiet.
3. Repairing or Upgrading Vehicles
When your vehicle stops working, so do you. Think about it: how would you get to work, pick up your kids, get groceries, and do everything else in your life without a vehicle?
Taking the bus? Not likely.
Personal loans can help you fix that shot transmission, replace those bald tires, or swap out your car altogether if you’re due for an upgrade.
4. Taking a Vacation
Vacations cost the average family over $4,000. Do you have that kind of money lying around to invest in a week of fun? We’re guessing that you don’t.
So then, how does a family like yours enjoy the relaxation and bonding time that taking an annual vacation provides? Personal loans!
Whether you have good or bad credit, there are personal loans that allow you to pay off your vacation in instalments instead of in a single burst. That arrangement makes sitting on a beach for a few days attainable for just about anyone.
There are a number of ways you can invest money which will make you more than it costs to take on a loan.
For example, if you had a trucking company and every truck you had on the road generated you $1,000 per month, taking out a loan that cost you less than $1,000 in interest to acquire a new truck would be a good investment.
Finding opportunities like that and taking out loans to fund them is a strategy that powers millions of businesses.
6. Fixing a Home
Whether it’s roof leaks, burst pipes, or a refrigerator that needs replacing, every now and then, your home is going to ask that you pour money into it. Given the steep expenses that are associated with home repairs, personal loans can help people of average means make necessary fixes that can improve their comfort and overall well-being.
7. Going to School
Going to college will almost certainly pay for itself over time. The trouble is getting your hands on the money you need to get your education started.
After all, the average cost of a 4-year degree is $56,000, including room and board.
Personal loans that are designed for students and awarded by both government and private lenders can help you make the ultimate investment in yourself and in your life’s outcomes by enabling you to learn.
8. Getting Married
Tying the knot is a beautiful moment in your life. It’s also going to be among the most expensive moments in your life.
The average cost of getting married in the United States is a staggering $38,700.
Unless you have family members who are willing to pool together funds to make the happiest day of your life happen, personal loans can offer you the benefit of having a wedding without having to impose on others.
9. Restructuring Medical Debt
The number one factor that drives people into bankruptcy today is medical debt. That’s a shame, given that medicine, surgeries, and check-ups with physicians are a necessary part of having a viable existence.
If you’re up to your neck in medical debt and are wondering how you can find a way to lower your payments so you can make your life more manageable, paying off your debt with a more consumer-friendly loan is a great way to achieve that end.
What Is a Benefit of Obtaining a Personal Loan? Everything We’ve Mentioned, and More!
If you’re ever asked, “What is a benefit of obtaining a personal loan?”, feel free to let your inquisitive acquaintance know the great things that people do with borrowed money that we’ve shared with you.
Debt managed irresponsibly can lead to tremendous financial hardships. Debt managed responsibly can pave the way for you to live your best life!
To enjoy more insight on a plethora of topics that are relevant in today’s culture, read more of the newest content on our blog!