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5 reasons people take out personal loans

5 reasons people take out personal loans

A personal loan can help you get what you want sooner. We outline some common reasons why people take them out.

A personal loan can be an easy way to help you get whatever it is you need if you don’t happen to have the funds available upfront. If you’re wanting to make a big purchase or payment, a personal loan can let you spring into action straight away so you don’t miss out.

Here are some reasons people commonly take out personal loans. 

1.       Make some home improvements

No matter what state your home is in, it can feel like there’s always something that could do with a little fixing up. A personal loan can help you pay to knock down a wall, put in some new floors and even break through the ceiling.

And sometimes it might not just be about improving or expanding your home. Making a number of small changes to your property can also add value when it comes time to sell.

2.       Pay for a wedding

Getting married might be daunting for various reasons, but the impact it will have on your finances shouldn’t be one of them. Weddings can be expensive, especially if you find yourself struggling to cut family and close friends from your guest list. A personal loan can help you have the wedding of your dreams.

3.       Head off on holiday

Whether it’s a friend’s wedding overseas or you’re just in desperate need of a break, you can use a personal loan to cover your upfront costs and repay them when you’re back home.

4.       Debt consolidation

If you’re finding yourself overwhelmed with a few different debts, and the different interest rates and repayment dates that can come with them, a personal loan to pay them all off could help. By consolidating multiple debts into a single debt you can set a clear repayment schedule on your terms, helping you budget a little easier and making repayments easier to manage. Before taking out a loan look at the numbers closely to make sure you’ll be better off.

5.       Buy a car

For many of us, a car is an expensive yet necessary part of life. If you’re in need of new wheels you may not want to compromise on quality because you don’t have time to save the full cost of the car. Buying a super-cheap lemon can end up more costly in the long run and continue to set you back unexpectedly. A personal loan may help you find the balance between affordable and fully functioning. 

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. You should consider seeking financial advice before making any decision based on this information.