6 Reasons You Need a Personal Loan

When used well, loans can be a great way to cater for important expenses that your current income cannot immediately cover. You can incur a significant expenditure then stagger the cost over time.

Personal loans can come in especially handy since the requirements are less stringent than those of other more complex forms of credit such as a mortgage. The following are some of the reasons why you would want to take a personal loan via SimplePersonalLoans.


1. Consolidating Your Debt


You may find that over time, you have loans from different creditors all of which have varying interest rates and repayment dates. Even if your income can comfortably cover these debts, having too many creditors increases the chances of you dropping the ball. If you ever do default, it also makes the process of negotiating more favorable terms that much harder.

You could take up a personal loan and pay off all your outstanding balances. By doing that, you combine your debt into a single monthly payment to just one creditor. It’s easier to stay on top of this one payment without feeling overwhelmed.


2. Paying Off Credit Cards


The main target of debt consolidation is credit card debt. But using a personal loan to consolidate credit card debt isn’t just important in getting your repayments more organized. Credit cards are by far the most expensive type of debt you are likely to have. When reports talk about Americans drowning in debt, it’s almost always in reference to credit cards.

Credit cards creep up on you. Some seemingly insignificant spending here and there can amount to thousands of dollars in debt over a couple of months. With the high interest rates, you can easily find yourself unable to keep up. By paying off credit cards with a personal loan, you can convert your expensive debt into a more affordable one.


3. Home Remodeling


Every once in a while, your home needs some changes to either repair the things that are falling apart or to try out a new interior décor theme. Whether you are looking to install a new roof, remodel the kitchen, fit solar panels, or add a hot tub or swimming pool, a personal loan is the way to go if you don’t have sufficient equity on your home mortgage.


4. Wedding Expenses


If you have always dreamed of having an unforgettable wedding but the current state of your savings account means you cannot afford it, you could always apply for a personal loan.

A wedding is a once in a lifetime event. Even for people who divorce, they are unlikely to remarry more than 4 times in their lifetime. Therefore, you don’t want to miss out on making sure everything is perfect just because you don’t have the money right now. A wedding personal loan can cover the bride’s dress, cake, flowers, photography, hiring the venue and more.


5. Emergency Moving


You’ve just gotten a job in a different city or state and you have to report to your duty station in a matter of days. Your new employer won’t cater for your moving expenses. A personal loan could help.

Ordinarily, moving is something we plan for months in advance. That gives you the time you need to organize the logistics and set aside the cash required. Sometimes though, moving must take place on short notice like the example we’ve shared.

If it’s a long distance move, the costs can pile up quickly. A personal loan can pay for the cost of moving your household belongings and car across the country, as well as paying the new rent and buying any new items you need at your new residence.


6. Medical Bills


The cost of healthcare in the United States can be prohibitively expensive. Also, not everything will be covered by your insurance plan. You will be forced to dig into your pocket to cover dental services, fertility treatment, cosmetic surgery, and orthodontics. These and ancillary costs such as hospital parking, medical travel and aftercare can be handled by a personal loan.

While a personal loan is a convenient tool to address immediate expenses, always remember that you eventually have to pay it back. Therefore, only take a personal loan when you are certain your income can cover it.