4 Common Ways to Use a Personal Loan

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No matter how much we try to prepare for emergencies, there are circumstances that can put individuals in a financial bind. One way to overcome these obstacles is with a personal loan. However, personal loan will not only help with any emergencies that come your way, but it can also help fund other activities, which may include weddings or vacations. Read further to learn some of the most common ways individuals use personal loans.

  1. Medical Bills and Other Emergencies

There are many reasons that you may be faced with unaffordable and unexpected medical bills, such as instances when you are involved in an accident. According to NBC News, an estimated 63% of individuals in the United States are not financially prepared for an emergency. In fact, NBC News also reported that these Americans have less than $500 in savings for emergencies. Unexpected medical bills, car repairs, and other circumstances can leave you in a position where you are not able to pay these additional bills along with your everyday expenses. A personal loan will allow you to settle unexpected bills and expenses while being able to maintain your budget.

Moreover, many borrowers use a personal loan to pay for braces, dental implants, cosmetic surgery, or other procedures that are not covered by health insurance. Some of these procedures, such as dental implants, are needed to improve an individual’s health. However, dental implants cost thousands of dollars, which is why a personal loan is an ideal option for those in need procedures that are not covered by insurance.

If you have a loved one pass away unexpectedly, you shouldn’t have to worry about funeral costs. Parting reported that the average funeral cost in the United States is between $7,000 to $10,000. A personal loan can help relive the burden of funeral costs, which means that you can focus on more important matters.

  1. Traveling

You can also use a personal loan for a vacation or traveling. The cost of a holiday often prevents families from taking vacations, as Forbes reported that the average cost of a vacation can average from $1,145 to $4,580 per person. A personal loan can allow you to travel the way you want to without having to be financially stressed during your trip. In addition, a personal loan can also be beneficial when you are traveling during the holidays. The cost of travel shouldn’t have to influence your budget for Christmas and holiday gifts. A personal loan can give you the ability to travel during the holidays while preserving your budget for gifts.

  1. Wedding Costs

A wedding can be extremely costly, as MarketWatch reported that the average wedding in the United States costs an estimated $30,000. A personal loan is a suitable option if you need help funding your wedding because you can have the wedding you want with an ideal timeframe to repay the loan.

  1. College Funding

The cost of attending a higher educational instruction isn’t cheap. In fact, College Board explained that a public college for an in-state resident is an average of $25,290 for the 2017-2018 academic year. If you want to attend a private college, then the average cost is a whopping $50,900. A personal loan can help you pay for the cost of tuition, books, and other expenses.

There are many other ways that individuals can use personal loans. If you want to find out more about the advantages of personal loans, contact one of our lending experts today.