The term “personal loan” gets tossed around a lot. But what can personal loans pay for? The answer: there aren’t many things that a personal loan can’t cover. Here are a few of the most clever reasons clients take out personal loans with DEXSTA.
Refinancing Credit Cards
Many people take out personal loans to help refinance credit cards or student loans to become debt-free earlier than they would have otherwise. An affordable, fixed-rate loan helps many people simplify their finances with a single monthly payment.
In fact, you can use a personal loan from your local credit union to consolidate any kind of debt. A personal loan may give you a lower interest rate on your debt or help you pay it off faster. With a fixed interest rate, monthly payment, and payment period, a personal loan could be your safest and most affordable way to pay off your debts. NerdWallet recommends visiting your local credit union before searching elsewhere thanks to their low interest rates and flexible terms.
Life’s Milestones
According to The Knot, the average American wedding cost $35,329 in 2016, and that price is increasing all the time. Online lender LightStream states that the volume of loans for weddings has tripled in the last year alone and that the average wedding borrower takes out over $17,000 and repays that over the course of four years. Taking out a personal loan for a fixed amount while wedding planning could help many couples stick to a set spending plan. Likewise, fixed monthly payments could make budgeting post-wedding easier.
Some students also prefer to take out loans for graduate or undergraduate schools. Student loans require you to use the funds for education-related expenses only. However, personal loans allow you to spend the funds as you see fit. This can be beneficial to students who need to purchase a car to get to school or pay for food while in school. The way you receive a student loan or a personal loan also differs. With most student loans, a lender disburses your funds through your school’s financial aid office first, and then you can claim whatever is left for other education-related expenses. On the other hand, personal loans are funded upfront in a lump sum, enabling you to spend your money when and where you choose.
Unexpected Expenses
Unexpected expenses always seem to arise when you can least afford them. Life is stressful enough when you have a sudden emergency, and financial concerns shouldn’t make things worse.
Whether it’s a trip to the emergency room, an auto repair, or a new computer (one that doesn’t have water damage), a personal loan can help you keep your debt under control and get you back on your feet when life throws its worst at you. A small personal loan can prevent unwanted situations from overwhelming you.
Personal Loans at DEXSTA
DEXSTA, your local credit union, is a great first stop when you’re considering personal loans. Credit unions are well-known for offering low rates and helping you tailor your loan to your needs to keep it affordable.