Few American adults have enough cash on hand to pay upfront for big-ticket items like cars, college educations, and homes. That’s why many people take out student, automotive, and home loans. When it comes to other major investments—like home renovations, weddings, vacations, and starting businesses—some individuals are now relying on personal loans to cover the cost. These loans are often used as a lower-interest alternative to credit cards, and they offer numerous benefits. Here, we’ll list a few ways people are fulfilling their dreams with personal loans.
Getting Out of Debt
For some Americans, their only dream is to get out of debt. The average adult has four credit cards, all of which carry balances that can be difficult to manage. By finding a loan, you’ll be able to combine all those payments and APRs into one bill.
Nearly 20% of consumers in an Experian study used personal loans to remodel their homes. Whether you’re gutting the house or upgrading a few appliances, personal loans allow you to pay for the job in easy-to-manage installments. It’s important to remember, though, that you’ll still pay interest. If there’s no hurry to get the renovations done, it may make more sense to save up instead of taking on additional debt.
Going Back to School
A federal student loan is an excellent way to get low-interest, flexible money for college. If you’re only taking a few online courses or getting a crucial certification for career advancement, personal loans are a great alternative. Before signing on the dotted line, be sure to research post-educational salaries and ask your employer if they pay for professional development.
Financing a Wedding
According to an article by The Knot, the average wedding costs more than $33,000. If you’re ready to take on debt from the beginning of married life, consider taking out a personal loan to pay for that dream wedding. If you’re having a small ceremony and want to spend more on a ring or a honeymoon, a personal loan can cover those costs, too. No matter your plans, it’s important to understand how monthly loan payments will affect your budget.
The Vacation of a Lifetime
If you’ve always dreamed of traveling to far-off, exotic locales, it’s never been easier to do so. These days, travel companies and airlines offer POS (point of sale) loans, but it’s also possible to use a personal loan to finance such a trip.
Things to Think About When Getting a Personal Loan
While the idea of quick cash is a tempting one, it’s crucial to keep a few things in mind. Personal loans include quick repayment terms. In most cases, you’ll need to start making payments within 30 days or less. Be sure to consider the following factors when researching personal loans.
- Interest rates. Personal loans usually come with fixed APRs, so you’ll pay the same amount each month.
- Loan size. Personal loans are available in sizes ranging from several hundred to $100,000 or more. Before applying, think about what you can afford to repay.
- Loan terms. These loans come with terms ranging from one to seven years. The longer the loan term, the higher the rate and the smaller the monthly payment will be.
By considering these factors and doing your research, it’s possible to fulfill your dreams with a personal loan. And, if you’re looking for a loan at a great rate, King of Kash can help. Call or click today!
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