Did you know that over 63% of Americans live paycheck to paycheck? If you fall under this category, it means you don’t have much money left over at the end of each month.
This can make it incredibly hard to build up your savings account or pay for large expenses. Fortunately, in times of need, you can apply for a personal loan to purchase what you need.
However, you may not know whether or not your circumstances call for a loan application. We can help you figure things out.
Keep reading for the top four signs you need a personal loan, plus how to pay it off quickly.
1. Car Repairs
Being an adult comes with certain responsibilities and obligations. First, you must maintain a job. In order to get back and forth to that job, you need a car. If that car breaks down, you won’t be able to get to work.
If you don’t have the money on hand to pay for car repairs, you can take out an online personal loan to cover the expenses.
2. Elective Medical Procedures
Health insurance can be a wonderful thing. However, few policies cover elective procedures.
Therefore, if you want cosmetic dental surgery, lip filler, breast enhancements, or a nose job, you’ll have to come up with the money yourself.
For most people, this means taking out a personal loan. Just make sure you find low-interest personal loans that will be easier to pay off.
3. Emergency Vet Bills
Countless adults are pet owners. However, very few of them invest in pet insurance. If something happens to your dog or cat, it will be on you to come up with the funding.
Yet, you can’t just sit back and allow your furry friend to suffer or die. In this case, a personal loan can literally save a life. Click here to see how we can help.
4. New Home Appliance, Furniture, or Electronics
Finally, it’s not uncommon for homeowners and renters alike to use personal loans to improve their living situation. You can use personal loans to purchase appliances, furniture, and electronics. This is an especially popular choice when people are moving into new homes that need to be furnished.
How to Repay Personal Loans Quickly
Regardless of why you want to take out a personal loan, it’s important to learn how to pay them back quickly. The longer you hang onto the loan, the more you’ll pay in interest.
While it will save you money on your monthly expenses to simply pay the minimum payment, we recommend paying as much as you can each month to eliminate the debt sooner. Additionally, use a personal loan calculator to research personal loan interest rates and how they affect the overall loan amount.
For example, a $5,000 loan over the course of five years with a 10% interest rate will result in $6,374 paid. The same loan with a 6% interest rate will result in $5,800 paid.
Do You Need a Personal Loan?
If you’re thinking about getting a personal loan, remember to weigh the pros and cons of your decision. Additionally, understand how personal loan rates affect your monthly and total payment amounts. Make the best decision for your needs and circumstances.
And if you want more financial or personal advice, we have more to offer. Check out some of our other articles before you go to find more helpful information for everyday life.
