A few years back a friend of mine wanted to take out a personal loan so she could buy a couch and a gym membership—those are absolutely terrible reasons to obtain one. I tried telling her that, but she really wanted the couch. Before you head out and get yourself one for your own couch, one of these might be the best reason for applying for a personal loan.
Reason for Applying for a Personal Loan
Debt Consolidation
No one loves having to pay off copious amounts of debt, but sometimes it happens. If you’ve got credit card debt among other debt-related costs, consolidation could be a great choice.
You can often obtain a personal loan for the purposes of consolidating your debt into one which can help lower the payments and make it easier to pay back. This could be a great option to ensure that you stay on top of your payments and help you save money in the long run.
Moving
Moving can get quite pricey, especially if you’re going for a long-haul move. While most people don’t get a personal loan to move short distances, for those cross-country jaunts you might be considering it.
Alternative to a Payday Loan
Payday loans are something that I believe to be a huge scam, bordering on criminal. But sometimes you need money right now. This is something that probably came very relevant to many people with COVID.
Whether it be to pay off bills or otherwise, oftentimes this is a good reason for applying for a personal loan that’s NOT a payday loan.
Remodeling a Home
Making changes to your home can be incredibly pricey. It’s not like you can run out to Walmart and get yourself a new roof on sale, or outfit your entire kitchen for a price that you can come up with on the spot.
There are plenty of reasons that you might want to do some remodeling on your home. And because it’s an expensive task, this tends to be a good reason for applying for a personal loan that many people take.
Emergency Expenses
It should surprise no one that sometimes things happen that you simply can’t control, so taking out a personal loan for emergency expenses is an acceptable reason to give when applying for a personal loan. Examples could include the money to pay for a funeral or medical bills.
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Tae started out as a journalist before following the money into the corporate world. But it turns out that the grass isn’t always greener and now you can find her spending most of her time writing about all the things she loves. Namely, money, travel and business with a hefty dose of self-deprecating humor. She is a podcast fanatic, blogging aficionado and loves to find new ways to turn passions into cold hard cash!