Finance
Top 7 reasons to get a personal loan
Personal loans are quite useful and can be used for a number of things, like financing home improvement projects, purchasing a new car or smartphone, paying for a wedding, or consolidating debts. While taking a personal loan to finance certain things makes sense, a few things shouldn’t be paid off with a loan. These loans are not worth the risk of debt in some cases. So, here’s when taking personal loans is a good idea: 1. To pay off high-interest debts Personal loans are not the most expensive in terms of repayment interest rates. Therefore, these loans can finance the repayment of other, costlier debts that one incurs. For instance, a payday loan comes with a high-interest rate for repayment compared to personal loan interest amounts. So, financial advisors tend to advise people with significant existing debt to take smaller debts and repay the money they owe their creditors. This logic also applies to repaying old personal loans. If someone has an old personal loan they need to repay, they can do so by taking out a newer one. People only need to know if application fees or prepayment penalties are attached to the new loan. Such amounts tend to be substantial.
Read More