Personal loans can be a powerful tool, when used wisely. But at the end of the day, they can create a cycle of spending more than you make, which can dig a deeper hole that can be hard to recover from. That’s why a personal loan should be earmarked for specific reasons. It might also be a good idea to reach out to a trusted financial partner to explore the best options for your circumstances. Here are three reasons why you may want to take out a personal loan:
Consolidating High-Interest Debt
If you have high-interest credit card debt, using a personal loan to consolidate that debt into one loan with a lower interest rate might be a good idea. Typically, personal loans come with lower interest rates than credit cards, which can provide potential savings over the life of your loan. After all, credit cards can charge 25% or more in interest compared to a personal loan of 9-15%, which can save a substantial amount of money over the long term.
Emergency Expenses That You Don’t Have the Cash to Cover
Emergencies happen, and your emergency fund won’t always be big enough to cover them. If you find yourself in this situation, a personal loan may be your best bet, especially when a home equity loan/line of credit is not an option Avoid using high interest credit cards or payday loans to cover emergency expenses.
Unexpected Job/Business-Related Expenses
Laptops break, companies move, cars need to be repaired - these are all unfortunate facts of life. If for whatever reason, there is an expense related to your income that needs to be paid, and you don’t have the cash to cover it, a personal loan is a possible solution. A personal loan can close the gap and cover expenses from a job loss or other job-related expenses.
KEMBA Financial Can Help with Personal Loans
If you’re considering a personal loan, KEMBA can help! We have personal loan products that will likely fit your needs. If you’re interested in taking out a personal loan with KEMBA, contact us today! We can help you determine if this is the best move for your unique financial needs. To get started, contact our local, dedicated associates at 614.235.2395 and select Option 2 to start the process.