Perhaps you’ve heard from your colleague that their application for a personal loan has been approved and you’re wondering if it’s something you can benefit from. Personal loans can indeed provide you with a small or a big amount of cash. For instance, there are lenders that will allow you to borrow anywhere between $1000 and $10,000.
Personal loans are quite versatile in that you can use it for almost anything you can think of. If you’re wondering what you can do with the money you get from a personal loan, here are some ideas from Shelby Finance Company:
What You Can Use Money from Your Personal Loan for
To Consolidate and Repay High-Interest Debt
One of the best uses of a personal loan is to repay a high-interest debt. The interest incurred with this type of credit is typically lower than that of a credit card, a payday loan, or other types of consumer loans.
When you use the money that you get from a personal loan to pay back your debts, then your repayment is lighter, too. Not only that, but the process of repayment is much simpler. Instead of having to pay multiple payments to different creditors every single month, you’ll just have one lender to send the payment to.
To Pay Medical Bills
There are unexpected instances in life that require immediate cash. A prime example is medical bills that may not be covered by insurance. A personal loan can be very helpful in such situations as you might be approved for a substantial amount with an interest rate that’s comparably lower than what you’d have to pay for if you use a credit card.
You don’t even have to seek lenders that advertise this specific type of loan as all personal loan funds can be used for medical bills.
To Get Home Improvement Projects Done
One of the best things you can spend your personal loan funds on is your home. You can do that upgrade or room addition that you’ve been wanting for a while now (depending on the loan amount, of course). Opting for a personal loan is better than applying for a home equity loan as the latter requires that you have enough equity in your home, which may not be the case for you. Taking the equity out of your property puts you at a higher risk of major consequences, especially if you owe a large sum that you cannot repay.
It is often wiser to choose a personal loan as you could get the money you need for the home makeover, minus the downsides that come with home equity loans.
To Pay Your Taxes
If you need to pay the IRS fast and don’t currently have the cash on hand, a personal loan could be just the thing. Neglecting your taxes have huge consequences. The penalties that could accumulate due to nonpayment could be bigger than the interest you’ll have to pay when you get approved for a personal loan. If you have any outstanding money owed to the IRS, then go ahead and see if this type of loan is one that can benefit you.
These are just some of the ways you can put a personal loan fund to good use. Of course, its uses are not limited to what’s cited here. You can put personal loans towards other uses, such as paying for your dream wedding or making a major purchase. It’s important, however, to consider repayment and interest. Personal loans are typically best for unavoidable circumstances and should only be used when they can benefit you more in the long run.
Shelby Finance Company is one of the best lenders in Memphis, TN offering personal loans. Contact our loan experts to apply for a personal loan and enjoy the dedicated service we provide our clients!