5 Reasons Why You Should Get a Personal Loan

A personal loan is a useful tool for many of life’s challenges that include handling emergencies, making a large purchase, and for better management of personal finances. 

Here are five primary reasons to consider when getting a personal loan:

Debt Consolidation

Do you ever find yourself looking at a stack of bills to pay and dreading the experience? Indeed, it is boring to spend time going through all those invoices to make the payments. Some people procrastinate and even leave this task undone. When they finally get around to doing it, they make late payments. This results in paying late fees that can damage credit history.

With a personal loan, you can gather up all those pesky bills, pay them all off, and then you will only have one manageable monthly payment. Taking cash out from a loan to do other things is also a possibility.You can set up an automatic payment of this debt consolidation loan and then forget about the annoying monthly task of having to face a pile of bills.

Major Purchase

Statistics Canada reports that the average amount in savings for a Canadian household is only CA$842. You cannot buy many major items with that sum. A personal loan is very useful for a major purchase such as furniture, major electronics, and appliances. Imagine yourself sitting on your new sofa and watching a great movie on a brand-new home entertainment system with a crystal clear wide-screen and theatrical quality sound. Why wait to enjoy the good things in life due to financial reasons when you can get a personal loan?

Car Loan

Having reliable transportation is a necessity for personal and professional reasons. If you are looking for a new car or a previously-owned vehicle and you need a car loan, there is a good way to know ahead of time whether you qualify for a loan and how much you can get. Working with a car loan specialist serving Ontario and Alberta will save you money. They provide cars loans for an inventory of over seven million vehicles that are for sale. If you pre-qualify for a car loan, it makes it easier to shop for one and take your time to choose the one you like.

Pay Off My Credit Cards

Have you taken a look at the interest rate for your credit cards? The average interest rate is 17.68% reported by CreditCards (August 2019). If you happen to make a single late payment, many credit cards have an accelerator provision that bumps the interest rate to some outrageous figure that may be as much as double this amount.

If you are only making the minimum monthly payment on your credit card bills, the balance will never go down. You will be paying these bills forever. A personal loan to pay off all your high-interest rate credit card bills is a very wise idea to stop wasting money paying excessive interest.

For My Business Expansion

Small businesses are a vital part of the Canadian economy. These businesses represent over 54% of the economy according to thebalanceSmallBusiness. Most business owners see ways that create opportunities to make more profits; however, they may not be able to take advantage of them due to lack of financing.

Inventory turn is the driver of cash flow. Cash flow is the lifeblood of the business. A personal loan can be used to capture an opportunity. For example, to buy inventory at larger quantities for a discount that makes a small business more profitable. Indeed, taking a personal loan for expansion can be considered as a wise loan. 

What it all boils down to … 

There are so many reasons for taking out a personal loan. If you are good at managing your finances, you should get a personal loan to consolidate your debt, make major purchases and even use it towards business expansion.If you take a personal loan and pay it off early, it looks superb on your credit history. Prudent use of credit and managing the repayments to improve your credit history will benefit you tremendously. So, why not get a personal loan and use it to your advantage today?