Personal loans can prove to be a true friend in need, provided you know when to use it and where to source your loan from. A trusted moneylender with a good reputation is your best source. As for the purpose of the loan, here are three situations when a quick personal loan can be of great help.
1. Paying off high interest credit card debt
Credit cards offer instant cash but the interest for repayment is the highest. Sometimes, it may even be as high as 24%. If you have a lot of accrued credit card debt, using a personal loan to close it would be a great idea. The interest rates charged by your moneylender would be much lesser than what credit card companies would levy on you.
2. Meeting unforeseen medical expenditure
Despite medical insurance policies that you might be having, sometimes, the cost of treatment for certain unforeseen and sudden medical emergencies can go out of hand. There are many cost heads that insurance policies don’t cover. If you are having problems dealing with these expenses, think of a personal loan before flashing your credit cards. Personal loans are easier to manage and they do not push you into a debt trap, like credit cards do.
3. Expanding your small business
Small businesses often need additional capital pumping for maintaining the required cash flow and also for expansion purposes. Moneylenders offer loans for small businesses at excellent interest rates, for this purpose. It is prudent to discuss your requirement in detail and opt for a loan that suits your need and provides a comfortable repayment schedule.
In addition, you may also seek a loan for a home renovation project, for purchasing high end electronic devices and so on. At all times, the decision to borrow money should be a judicious and well thought out one. Borrowing should never be frivolous.