A personal loan is a great way to take care of expected and unexpected expenses, but there are right ways and wrong ways to use a personal loan. Here’s our top ten list.
Do use a personal loan to consolidate debt.
Put all high-interest credit card debt and payday loans into one loan with a fixed rate, a fixed monthly payment and a closed-end term. You’ll save money and make debt management a lot simpler. Be sure to stop using any credit cards you pay off so you don’t rack up another large bill.
Don’t use it to pay for your college tuition.
Instead, take out an education loan with the help of United Texas.
Do use it to finance renovations on your home.
Be smart about your renovations though, and only choose those that will increase your home’s value.
Do use it for moving expenses.
Whether you’re moving cross-country for a job opportunity or another reason, a personal loan can help pay to transport your car, move your belongings and buy furniture for your new residence.
Do use it to pay for large, unexpected expenses.
A funeral or adoption costs can be challenging to fund.
Do use it to foot medical bills.
Items such as fertility treatments, large dental treatments and cosmetic surgery are not covered by most insurance, so you’ll be footing the bill for these expenses.
Don’t use a personal loan to pay for everyday expenses.
If you find yourself doing this, you may be in financial trouble. Speak to one of our representatives for help with debt management and general financial guidance.
Do use it to purchase a car, boat or RV.
Do use it to take a dream vacation.
Don’t do it twice a year, but a personal loan can help you finance your trip for a milestone anniversary or another special occasion that warrants an extravagant vacation.
Do use it to pay for a wedding.
A personal loan will give you more flexibility than a wedding loan.
Your Turn: How did you use your personal loan? Share with us in the comments!