So, you are thinking about applying for a personal loan. This is a positive financial step to take if you have a goal in mind and need the means to achieve it. You might want to use it towards some costly medical bills you have incurred or for paying off your veterinary bills for your pet. A personal loan doesn't require you to disclose what you will be using it for, which means that you are able to use it as you wish, even for mundane expenses such as daily life necessities. However, there are both good and bad ways to use your personal loan, such as splurging on unnecessary luxuries. If you know you can afford a loan after using a personal loan repayment calculator, read on below for just some of the ways you can use the money.

Emergency expenses

We can never tell what is just around the corner in life. If you do not have the ability to put together an emergency fund, then taking out a personal loan can help with bridging this financial gap. Often you will find that personal loans have a lower interest rate than payday loans or loans from service providers. You might think you are too young to think of an emergency fund, but it is important to start thinking about building one up. Emergency expenses also include expenses such as having to pay for a serious illness or injury, major car repairs as well as pet emergencies. While you might be able to get a lower interest rate by applying for a secured loan, you most likely do not have any collateral to offer. This is why a personal loan is a better choice as it does not require any collateral for a successful application.

Consolidating your debts

One of the best uses for a personal loan is to consolidate your debts. This means that all of your debts will be brought together into one monthly payment. And, depending on your circumstances, you could end up paying your debts much sooner than anticipated. You should always ask for debt advice before using your personal loan for debt consolidation, and remember to use a personal loan repayment calculator to calculate your affordability. The advice will help you to address how you got into debt in the first place, as well as how to avoid going back into debt. Repaying your debts at a young age is better than having to go through life accumulating more and more.

Repaying medical bills

While this might not be the best use of your personal loan, it is something that can help to alleviate you monthly expenses. If you do not have a medical aid, you might need to look into a personal loan to cover unexpected medical expenses, such hospital stays for minor operations. You should speak to the doctor or hospital to see if they offer a repayment plan, but with many this is not the case. These medical bills can become exorbitant, which is where a personal loan can come in handy. A good way to avoid having to go to the doctor at all is to eat a healthy diet, maintain exercise and keep yourself as germ free as possible. But we all know that you cannot see the future, and so medical bills are an inevitable cost you will incur.

Paying for your wedding

As the average cost of a wedding creeps ever higher, you might need to consider taking out a personal loan to cover the expenses of your big day. The average cost of a wedding in South Africa is around R80 000 to R150 000. This is a large price tag for anyone to pay. Everyone dreams of having the perfect wedding, but not everyone can afford this, so use an instalment calculator to find out what sized loan you can take out to pay for your nuptials. You will have to be sure that you and your future spouse are able to afford repaying this loan. It is not wise to enter into marriage with debt hanging over your head, but a personal loan will certainly help take away the stress of having to scrimp and save for a wedding.

Be wise with your money

Taking out a personal loan is a serious financial consideration. You will need to be sure that you can repay it without having to skip any payments, but it can be very useful in times of need. If you cannot afford to pay for an emergency expense, a personal loan can bridge this financial gap effectively. You could consolidate your debts or even pay your medical bills. By taking out a personal loan, you will be able to live your life to the fullest while becoming debt free.

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