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How To Use Small Personal Loans To Your Advantage

Debt is potentially a cause of stress or a great financial tool, if the borrower uses it wisely. Credit cards are a popular debt vehicle for short-term needs, however, small personal loans can be a more effective tool in certain situations. Here are some examples when a personal loan is a wiser choice than a credit card.

1. Medical emergencies

A car accident or an unfortunate fall can leave you strapped for cash in a blink of an eye, tempted to use a credit card to pay the hospital bill. However, a personal loan typically offers a smaller interest rate and a fixed term, which means you can pay less overall and be out of debt faster. Plus, with cash proceeds from the loan in hand, you can try to negotiate the payment amount with the hospital and settle your bills for less. Cash is a powerful negotiation tool.

2. Special occasions

Is a special birthday, anniversary, or seasonal holiday coming up? Do you not have the cash available to get a great gift? A small personal loan provides an easy and convenient way to get the items you need today, and pay them off with future income. Having a fixed amount to repay, instead of the ability to go into more debt on a credit card, is a good self-control tool to limit your total debt. Set the budget for your spending, get a loan in that amount, and pay it off as fast as you can once the holiday is over.

3. Holidays

As the popular saying says – Yolo (you only live once), so why not enjoy life and take a break from work somewhere exciting? Getting a small personal loan will help you go on holiday and pay for your souvenirs without worrying about spending too much (like you could on a credit card). Plus, if you take the cash and pay with it, you avoid foreign transactions fees often charged for credit card usage.

There are many other situations when personal loans are a great choice – covering a period between jobs, refinancing a high-interest credit card balance, covering an expensive vehicle repair, etc. To see what you qualify for, apply today and let our experts help you.