Should I Get a Personal Loan? This Is When It Makes Sense

If you’re asking yourself, should I get a personal loan, there is a likely chance that you’ve found yourself in a financial situation that you feel like you can’t get out of.

But, a loan isn’t always the answer because it can throw you further into debt than you may be able to handle in the long term. That’s why we’ve put this handy list together for you to reference while you make your decision.

If you’re grappling with the idea of taking out a loan, keep reading to understand how it can work best for your situation.

Should I Get a Personal Loan? 6 Reasons to Take Out a Personal Loan

You’ll never learn how to handle your money if you’re constantly swimming in debt. That means that you should avoid more debt when you have the option. 

But, the reality is that there are some times when a loan can help. Let’s take a look at some of the most popular reasons to take out a personal loan.

Should I Get A Personal Loan

  1. Large Purchases

You may be wondering, should I take out a loan for a large purchase? The answer is, only if it’s a purchase that can’t be avoided. You shouldn’t take out a loan to buy a new wardrobe or furnish your home, but if you need a new car or refrigerator, considering a loan option isn’t a horrible idea.

  1. Emergency Costs

Many people today struggle with obtaining health coverage and when an emergency strikes, it can be scary to watch the medical bills piling up. If you want to pay them off fast, a personal loan could help.

  1. Moving

Sometimes we can’t avoid a big expense like moving. If you’re a renter, you’ll need first and last month’s rent, if not also a deposit. Not to mention the cost of cleaning supplies, the moving truck, etc. A personal loan can ease the tension that this event has on your finances.

  1. Remodeling

While remodeling isn’t always a necessary expense, it could be in some circumstances. Perhaps you need to make space for additional family members.

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A personal loan will cost more than refinancing your home and using equity but if you don’t have much equity, the personal loan option may be helpful.

  1. Debt Consolidation

One of the main reasons to get a personal loan revolves around debt consolidation. You can get one low-interest rate and one payment in lieu of multiple payments on high-interest credit cards.

  1. Refinancing Student Debt

Speaking of debt, student loans don’t ever go away. If you’re swimming in school debt, a personal loan can be a great way to keep your finances streamlined.

Getting a Personal Loan

So, the answer to your question, should I get a personal loan, is actually this simple. Only if you really need it. And, you probably don’t need it if the reason is not on this list. 

Be smart with your money, especially the money that you don’t have. Taking out a personal loan can help you in the short term, but make sure the long term benefits are worth your while, too.

We hope you found this post helpful. Check out our Shopping section for other great tips on saving money while you’re spending.