Personal Loan

5 Reasons to Get a Personal Loan

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When we are in an emergency or we need money for any unseen and unavoidable circumstances, we start thinking of sources from where we can get easy access to money. And undoubtedly, a personal loan is one of the easiest ways that hit our mind when a crisis calls in. Some people may consider using a credit card, some people may have enough savings that will tide them over the financial crunch, but everyone is not fortunate enough to save enough money for the rainy days. Personal loans generally do not require any collateral or co-signer and hence, many people opt for it. Also, the loan providers and credit brokers have developed highly advanced systems for the borrowers that offer ease, convenience, and agility.

What is a Personal Loan?

It is a loan that you can borrow from a lender, financial institution such as banks and repay them over several months. The loan amount can be used for a variety of personal reasons. Generally, lenders offer you to borrow an amount from £1,000 to £35,000. These loans are also known as unsecured loans as the borrower doesn’t have to offer any type of collateral. The repayment period may vary from one month to seven years. However, the amount of money that you can take out and the repayment period also depends on the lender, your credit score and other factors. There are many lenders in the United Kingdom who offer Personal Loan for Bad Credit. These loans have a higher rate of interest because of the chance of the borrower for defaulting on the loan increases.

Here are the top 5 reasons for which you can get a personal loan:

Home Improvement

What will you do if you wake up to a leaky roof or you find that the boiler is simply not working anymore? You’re in the middle of the month and you do not have sufficient money to cover these expenses. The limit of your credit card is also exhausted. That’s when a home improvement loan can help you carry out these tasks without any hurdles. Borrow an amount that you need and can afford to repay, get the things done using that money and repay the lender in monthly instalments. Most of the people in the United Kingdom borrow this loan to cover small home renovation costs too.

Unforeseen Expenses

If you do not have an emergency fund and you receive a huge tax bill or you get a notice to pay a huge amount at your kids’ school, or you need to cover an emergency medical bill – you can take out a personal loan that will help you in all of these situations. Sometimes, we are not well-prepared for a situation, and we do not want to involve anyone else in our personal finance matters, then this loan is one of the best ways for your problems. You do not need a co-signer and hence, you can apply for a loan without a guarantor for a loan in times of need.

Wedding Expenses

The average cost of a wedding in 2019 is £31,974 according to youandyourwedding.co.uk. Usually, people save up for their big day, but if you were unable to or the money that you have saved is not sufficient and you need extra money to cover the shortfall – you can borrow a Wedding Loan in the UK. This is a personal loan and you can use the money to buy your dream wedding dress, or you can use it for your honeymoon, you can also use the money for buying the ring, to cover food and dining expenses, etc. It depends on you how you choose to use the money.

Personal Loan
Pay for a Vacation

Almost all of us wants to go on a vacation once in a while. A holiday becomes an absolute necessity when we work continuously for months. Research shows that nearly 60% of the population of the UK took a foreign holiday in the past 12 months – the highest since 2011. The trend of holidaying is growing at a rapid rate. Some of us do it for the sake of social media while some of us just want to spend some time relaxing and rejuvenating ourselves. If you want to tick off a place from your bucket list but do not have enough money – go for a personal loan and take some time off.

Merge your Debts

A pile of unmanageable debts make it difficult for us to plan and stick to a budget. Moreover, it becomes difficult to keep track of the repayments. If you have multiple debts that you are paying off, consider consolidating them into one. That means instead of repaying multiple debts, repay only one. Combining your existing debts into one is one of the most efficient ways for debt repayment strategies. You can also save some money as the interest rate that you may get on a consolidation loan be lower as compared to all the other existing debts.

Borrow Wisely, Repay Timely

A personal loan can prove to be beneficial when you’re stuck in a financial crisis. But if you do not plan for its timely repayment, it can backfire and ruin your credit profile. A poor credit profile makes it difficult for you to borrow a loan or apply for a credit card in the future. Before borrowing a loan, know how much amount you need and if you have a plan for its repayment. Only borrow an amount that you can afford to repay or else you may be trapped in an endless debt spiral that will worsen your financial circumstances. If you think that you can repay the loan on time and in full, then opt for a loan. You can also try to get the necessary funds from alternatives such as by borrowing from friends and family or by asking your employer for a payday advance.

To start your application for a personal loan, Click Here.

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