4 Uses for a Personal Loan That Feels Good

A personal loan has many uses. While taking out a loan when you have bad credit is certainly tougher, if you feel that you’re ready to repay it in a reliable manner, then it can help prove that you manage debt better now. This will improve your credit score over time which tends to lower your future borrowing costs too, including a mortgage.

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Here are 4 uses for taking a personal loan that have a feel-good aspect.

1. Buying a Car

When you own a car that is on its last legs, you’re always worrying that it will break down on the way to work leaving you needing to call AAA to get it towed. Then you’ll be way late for work and must explainwhy to your boss. Just the stress of this constant worry is painful. However, buying a new car by using accessible financial resources like a personal loan is an affordable way to resolve the daily stress.

You don’t have to go crazy about what you buy. It’s not always necessary to purchase a huge gas-guzzling SUV if what you need is a reliable vehicle that can be depended on.

2. Adding an Extension to Your Home

Expanding your home using your existing land – once you have the appropriate permissions from the local authority to build out – prevents you from needing to move. Re-financing a home mortgage is an expensive thing to do and relocating is disruptive. It is much better to expand from what you already have even if you’re building an extension and knocking down a non-bearing wall to expand the size of a family room.

Get professional help with your plans. If you have no prior experience expanding a home, then getting several quotes to find the best team at a sensible price (so you know how much to borrow) and hiring them, is a better option than trying to handle it all yourself. The process of having to move, and your kids needing to attend a new school if you’ve changed school districts, or your commute getting longer, are all reasons enough to want to stay where you are.

3. Bucket List Vacation

Going on a once-in-a-lifetime vacation is something that we all dream about. Whether that’s a 10-day cruise around the Caribbean or flying to the Far East to explore the mysticism and ancient rituals, we all have something on our bucket list to cross off. Getting to it is another matter entirely!

Just securing enough vacation time off is a challenge. Then financing the cost of the travel booking, setting aside money for travel supplies, new swimwear and everything else before leaving, and having ample spending funds while away really adds up. When you must put it all on a high-interest credit card and struggle when you’re back home with paying off the debt at high interest, it makes the vacation less enjoyable. Having a loan with a planned monthly repayment with no surprises takes the worry away and ensures you get to take the dream trip after all.

4. Creating an Emergency Fund to Feel Safer

When it takes time to build up a 12-month emergency fund, one way around it is to borrow the funds initially and then repay the loan over time. This way, you have ready access to the cash in an emergency and a secure sleep-at-night factor. Often people find that repaying a structured personal loan while having cash on hand for emergencies is a better option than trying to save up an emergency fund over a couple of years and feeling vulnerable due to a lack of substantial savings while you’re doing it.

There are many ways to use a personal loan to increase your happiness. It’s not all about reckless spending. There are also sensible reasons to take out a loan at different times in your life too.