8 Ways To Use Personal Loans in Athens, OH
As an Athens, OH resident, you might find yourself wanting or in need of a personal loan. It could be due to an emergency, a strategic financial move to consolidate debt, or because you want to finance a large purchase.
Whatever your reason, it’s helpful to know the different ways you can take advantage of a personal loan and personal loan lenders in Athens, OH that can help you get the money you want or need.
Consolidate Credit Card Debt
We’ve all had a weak moment at the Tanger Outlet Malls. Or several of them.
While using credit cards can help you if you’re in a bind, the high interest rates can also hinder your financial growth. Borrowers often seek personal loans to consolidate their high-interest credit card debt into one low-interest personal loan.
If you go this route, you’ll use your personal loan to pay off all or most of your credit card balances. This allows you to reduce the amount you pay in interest, which decreases how much you pay overall.
Consolidating your credit card debt with a personal loan is a good option for you if you have high interest rates, have a lot of credit card debt, or find yourself making hefty monthly payments.
The key to this strategy is to stop using your credit cards or reduce your usage to just what you can pay off each month. Otherwise, you may be stuck paying off a personal loan and making expensive credit card debt payments at the same time.
Home Repairs or Renovations
If you own a home, you could find that you need to make unexpected or expensive home repairs or renovations.
While you may hear Athens Kitchen & Bath calling your name, you might not have the money in savings to fund your repair. If this is you, a personal loan might be the best choice.
Unlike many other reasons you incur debt, making home repairs or renovations can be seen as an investment. That’s because they often increase the market value or resale value of your home, which is why a popular choice to fund home repairs or renovations would be a home equity loan or home equity line of credit (HELOC). The interest on home equity loans and HELOCs can sometimes be tax deductible if you’re undertaking certain repairs or renovations.
However, for borrowers who don’t have the equity in their homes to qualify, a personal loan is an excellent option.
Major Life Events
Major life events often come with significant price tags. If you need funding for a wedding, graduation gift (go Bobcats!), retirement party, or other significant event or celebration, you could pay for it using a personal loan. Selecting a personal loan with a lower interest rate compared to a high-interest credit card can save you thousands of dollars when you’re making your repayment.
You must weigh the pros and cons of each financing option before taking out a loan. Some life events can wait, such as paying for a wedding. So in those cases, you could decide to wait and save your money until you can afford it in cash. Other events such as graduation have a set time frame, so you don’t have a choice regarding when payment is needed. Either way, you want to make the best financial decision overall.
Medical Procedure Loan
There’s no doubt that medical bills can be costly. Even with insurance, you may be in a bind to cover the portion you’re responsible for. Other procedures aren’t covered by insurance at all, such as some dental work, long-term medical care, or fertility treatments.
Getting a personal loan removes any barrier to receiving the medical procedures you want or need.
Business Expenses
Starting a new business can be exciting, but it can also be expensive. Along with the fees associated with setting up a website, buying a domain name, and all of the basics, you also have to consider any costs for materials, professional development, etc.
While you might initially assume that a small business loan would be your best bet, you could find that you don’t qualify for a small business loan and will instead need to use a personal loan to fund the start of your business initially.
Vehicle Purchase
While not ideal, you could end up using the funds from a personal loan to buy a car, boat, or motorcycle. This isn’t usually the best choice since the interest on a personal loan will generally be higher than that of a vehicle loan.
However, if you’re in a position where you don’t qualify for a traditional loan, a personal loan could be your only option. In that case, be sure to shop around for the best loan terms to reduce how much you pay in interest.
Payday Loan Alternative
If you find yourself in a position where you’re considering getting a payday loan or a vehicle title loan, you might want to consider a personal loan instead.
Payday or title loan rates are often excessively high and nearly impossible to pay off if you get caught in the cycle. Some might also require collateral, such as your car title, and can repossess your vehicle if you fail to repay on time.
Looking for another payday loan alternative? Avoid the up to 800% APR with a CU Cash Now™ loan, with an up to $500 credit limit and an APR as low as 18% (terms and conditions apply).
Unexpected Expenses
Life happens, and sometimes you need to cover unexpected costs. They could be funeral costs for a relative or expenses related to your children. Whatever the reason, if you don’t have the money in your savings or in your checking account to cover the costs, a personal loan is often an excellent choice to help you quickly get the cash you need.
Find A Personal Loan Lender In Athens, OH
If you need the money to cover expected or unexpected expenses, consider getting a personal loan to take care of your needs. Whether you’re paying for medical bills, consolidating debt, or covering an emergency, a personal loan can help you quickly get funding.
When you’re looking for a personal loan lender in Athens, OH, consider OUCU Financial to help you secure a low-interest personal loan fast.
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