You might need a large amount of money for a major purchase or just some cash to tide you over to the next pay day. Unless you are wealthy there are any numbers of times when you might have the need of financial assistance and here are 8 reasons for a loan.
1. Debt Consolidation
If you’ve already got a few small loans or credit card debts it means you are making a number of payments every month. A consolidation loan means paying off all existing balances leaving you with just one single monthly payment.
Sometimes the reasons for a loan carry some risk. You might hear of a stock investment that promises a rate of return too good to pass on or you might be looking at investing in a buy-to-let property. At least with a loan your speculation is spread over a period of time.
For many people having a car is necessary whilst for others just a convenience and for an awful lot of us it’s one of the main reasons for a loan.
Weddings don’t come cheap especially if you want a real celebration where you are joined by all your family and friends. Any bride-to-be will undoubtedly agree that a wedding is definitely one of the very best reasons for a loan.
Education is the investment in your future and also the key to your future income earning potential. It’s a hard fact of life to graduate from college with an outstanding loan but hopefully the investment in yourself pays off down the line when your career takes off.
Actually, I think this is one of the not-so-hot reasons for a loan. Everyone deserves a vacation but if you can’t afford it, taking a loan may cause you more stress than you took the vacation to escape from. Of course, if you can afford it and it means the holiday of a lifetime, why not?
Renting is just not the same as owning your own home and unless you’ve won the lottery or are independently wealthy, financing a house is a very good reason for a loan and probably the biggest financial commitment any of us are likely to make.
Sometimes not being able to afford it just isn’t the answer. If your house needs a repair that seriously affects your quality of living or you suffer an unexpected medical expense that isn’t covered by your insurance, a loan is often the only answer.
Please note these reasons for a loan are not given as qualified financial advice. Before entering into any loan agreement you should fully understand the terms you are committing to and that you can afford the repayments.
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