Personal loans are a little different from other types of lending options. One major difference is that you are free to use the money for any purpose that you like. The fact that there are lenders out there who offer this type of loan makes it possible to meet just about any type of financial challenge that one can imagine. If you find yourself seeking a loan for personal needs, you’re likely to find that lenders are fine if you use the money for any of the following situations.
Taking Care of Medical Debt
Even with excellent health benefits through work as well as through national health, you’ve had some expenses that must be settled out of pocket. The problem is that you don’t have the funds on hand right now. Rather than allow those balances to increase due to various fees and charges, why not use a loan to wipe them out now? The interest rate on the loan is likely to be lower than the combined rates on the medical debt. That allows you to settle the balances now and even save a bit of money.
Cleaning Up Tax Debt
After completing your tax returns, it looks like there will be no refunds this year. In fact, you will owe a little. Since the bank account balance is a little low, it makes sense to cover the debt using the funds from a personal loan. Many lenders can have the money in your account in a matter of days. Once that’s complete, send in the payments along with your returns. The peace of mind that comes with knowing everything’s in order is worth having a small loan to repay over the next six months or so.
Repaying Money That You Owe to Friends or Family Members
Perhaps you were in between jobs for a short time and there wasn’t enough money to stay on top of your debts. That temporary financial embarrassment led to borrowing money from friends or family members. Now that you’re working again, it would be nice to repay them now instead of later. The funds from a personal loan can allow you to do that.
Secure enough money to repay everything that you borrowed. That helps to maintain the good will that you have with your loved ones. It also allows you to feel good about getting the money back to them. You’ll also feel great when you retire that personal loan in a few months.
Reorganizing Your Secured and Unsecured Debt
You have several unsecured obligations and it would be nice to settle the balances sooner rather than later. Did you know that you could use a personal loan to retire all of those debts? Use the funds from the loan to pay off the balance owed to each creditor. In many cases, the interest rate on the loan will be equal to or lower than the rates associated with those unsecured debts.
Once all those other debts are retired, you’re left with the monthly loan payment to manage. Pay if off as quickly as you can, and the impact on your credit score could be more positive than you hoped.
Settling a Payday Loan Balance
An unexpected set of circumstances left you in the loop of constantly renewing a payday loan balance. Along with being costly, this situation tends to get worse before it can get better. You need a way to settle the loan once and for all and get out of that loop. A personal loan could be the solution that you seek.
Use the money from the personal loan as a sort of payday loan alternative that helps bring the entire process to a stop. The funds from the personal loan allow you to settle the payday loan in full and stops the accumulation of additional interest, fees and penalties. All that you have left is to repay the loan using the schedule that came with the approval.
Getting a Collection Agency Off Your Back
Unfortunately, you had an old debt end up in the hands of a collection agency. The agency is contacting you on a continual basis about paying off the balance. It’s also made clear that interest is being added to the amount that you owe. Since you’re tired of the collection attempts and just want the entire matter to be settled, now is the time to apply for a personal loan.
Once the money is in your hands, pay off the debt that’s in collections. Make sure that you receive confirmation that the payment is received and applied to your account. Once the collection agency is no longer a factor, you can concentrate on repaying the loan on or before the due date.
There are many other ways that you can use the money from a personal loan. From funding a holiday to buying something for the special person in your life, the possibilities are endless. If you could use money for a specific purpose, look into applying for this type of loan today. The money could be in your hands a lot sooner that expected.
Imon is a freelance writer.