Where can I use my personal loan?
Because of their accommodating nature, you can use them for ANYTHING. Personal loans can be super tempting to benefit for every huge expense in your life. All this freedom can get a little scary, especially considering how personal loans are just like any other form of debt, with interest and other fees.
You might ask: For what reasonable purpose should you take out a personal loan? Make sure that what you are spending on is a good investment. And always check on the fees and interests attached with your choices of personal loans.
Let’s see what your personal loan can you use it from.
Paying for your/your child’s education
Education is one of the most important investment in getting the best for you or your children’s life. Sadly, to say, it’s one of the most expensive investment. Even though there are payment options in most schools, taking that huge amount of money can be overwhelming. This is where personal loans can come in handy. You should look for loans that gives lower payments compare to some schools but you watch out for some where you might end up paying more than the actual school fees.
Home shopping and renovation
You want that massive home renovation? The tiles at home cracking the water marks on the ceiling needs to be painted over? You can get a personal loan for that. Never underestimate the power of well-designed house. If you ever what to sell or rent out your home, then it justifies taking out a personal loan. A nice looking house will boost the property’s value. Fix the flooring, give your home a new paint job or even buy new energy friendly electrical equipment. It will save you money in the future.
Debt consolidation and paying off credit card debt
I know it’s contradictory, getting a personal loan to settle a debt? That’s true, but if your financial situation needs a major overhaul, it might save you thousands in interest payments. If you just pay all your pending debts all at once you will only need to pay one monthly payment for that loan that you took, which way easier to manage. You credit card bills is pilling and the interest is crazy high? Pay if off with a personal loan. Personal loans have a lower interest rate if you know which one to look out for, and loans have end dates so you know exactly when you will be debt free. Don’t forgot that when you pay your credit card debts, don’t touch that card anymore unless it’s an emergency.
This is reason is pretty common for banks to have personal loans, but it’s not the best in this list. If you can save up for your vacation, it would be a better deal.
But thanks to personal loans, a dream vacation or honeymoon can turn into a reality. So this way, you will still have your savings and use your future income to pay for the loan. Though, the trip is usually short-term make sure that the trip is worthwhile! Use a loan calculator to know how much you will be paying monthly and determine if the trip is worth the extra monthly expense.
If you really must have an extravagant wedding, why not? Taking out a personal loan so you don’t have to stress over money on your big day is not wrong. Just like the vacation this might seem a little short-term payoff, so make sure you are willing to pay the cash loan back for months or years to come.
Alternatively, you can ask you guests to help pay for your wedding reception instead, In Malaysia, a box is placed at the reception area at the registration table.
Personal loans are pretty powerful, but like any other debt, they are still responsibilities that are not to mess with. Evaluate your financial habits, and see if you are able to pay off the loans and always take out the best loans with the most reasonable interest rates!
Emergency Medical Expenses
Emergency medical expenses is one of those unforeseen short term expenses and the most devastating. Medical fees are pretty heavy to bare and they simply cannot be avoided or postpone. With this type of cases, personal loans can literally be a lifesaver. It can be a one-time deal like an emergency surgery or to help medicate an accident, but some can last a lifetime thing like chronic illnesses or maintaining medicine. Still we can consider medical expenses as investments for long term. Getting a personal loan that has a low-interest can make these expenses easier.
Still don't know where to get the right personal loan for you? Go to GoBear Malaysia and compare rate that best fits you.