Taking a personal loan to make ends meet is arguably not wise. Because the personal loan is certain to add debt so that it makes you more difficult when replacing it. Especially if you take a personal loan for needs such as vacations, buying a car, or getting married, then this is not recommended.
But in reality, there are still many people who take personal loans to make ends meet. They consider that taking a personal loan for needs is a natural thing. Especially if you really want something, such as a car.
Even if you really want to buy a car, there are institutions that offer car loans but with low interest and easy terms. This is of course lighter than having to take a personal loan to buy a car. But there are still many who do not know it, so they prefer to take personal loans. Are you one of them?
Involved in Debt Consolidation
Do you know what debt consolidation is? this is a situation where a combination of several small loans forms one large-value loan. With this debt consolidation, you who have multiple debts at once can combine them into larger loans. The purpose of debt consolidation is to ease the bank interest paid when making installments.
In addition to being able to get lower interest rates, you can also be more comfortable when paying debts because you only have one loan. So every month only need to do one transaction. No need to make transactions many times which will also cost.
In conditions of debt consolidation this is the right time to apply for a loan. Because usually, the more the loan amount, the lower the loan costs or interest rates. So, if you have multiple debts at once, you can use a personal loan to consolidate debt so that the interest paid can be lighter.
Even so, debt consolidation is not the right solution for a healthy financial pattern. Debt consolidation only helps to merge debt into one lump-sum. If the monthly payments that you make under a debt consolidation loan will appear more. This is because the tenor or loan term is longer, which means the interest paid is also greater than before.
Paying Credit Card Bills
You can take out a personal loan if your credit card bill is nearing the limit and there is no other way to make payments. Even though interest rates remain on personal loans, they are cheaper if you have to let interest and credit card fines pile up.
Because the credit card has a different interest system with a personal loan if it does not pay off each month so that the interest can be more. You will be inconvenienced because the bill does not pay off even though you have paid credit card bills every month.
Especially if you want to immediately use a credit card while the billing problem is not over, taking a personal loan can be a good solution. But if you pay off your bills with a personal loan, you need to start controlling the use of credit cards. Do not let the same thing happen again because not necessarily the next can get a personal loan easily.
In an emergency, you actually have to have a reserve fund so that the finances don’t get worse. However, if there are not enough reserve funds available, you can take a personal loan to make ends meet. Some emergencies include car repairs, hospital costs, or home renovation costs.
You can take out a personal loan because it is an emergency that cannot be delayed anymore. You may not have to wait to have money in advance to pay for all hospital treatment costs or buy prescription drugs. Moreover, if you are in critical condition and need help as soon as possible then there is no best way except to make a personal loan.
A personal loan process that doesn’t take long can also help you get funds quickly. So that emergencies can be overcome even though financial conditions are in an unstable state.
Make a Personal Loan Only in Certain Conditions
Personal loans are one thing that can make Lite Lenders financial condition worse, especially if done in conditions that are not right. But on the contrary, personal loans can help financially under certain conditions. So make sure to only make personal loans under three conditions namely an emergency, to pay credit card bills, and debt consolidation.