When Are Personal Loans Appropriate?
Many financial gurus out there frown on loans of any kind. While these individuals do have good reason for their opinions on loans, they fail to consider every situation. If you are having a hard time deciding whether or not a personal loan is a good idea for you, it’s important to look at the situation as a whole before making a decision.
Below we have put together a list of 3 situations that in our opinion absolutely do call for a small loan.
#1: An Inability to Meet Immediate Needs
This one goes without saying. If, despite your best budgeting efforts, you find yourself in a place where you are unable to meet your family’s immediate needs for food, water, and shelter, it is most definitely time to look into a small personal loan.
This assumes that you have money coming, and will be able to pay the loan back fairly quickly without the loan accumulating a large amount of interest. If you are unsure about where your next paycheck is coming from, consider looking into other means of assistance until you can get back on your feet.
#2: Unexpected Emergency Situations
A well-padded emergency fund is a must-have. However, sometimes life throws us a curveball and even a decent emergency fund isn’t enough to fix the problem. For instance, a family member may suddenly fall ill, requiring you to fly to them on short notice. In such cases, a small short-term loan may be the best option for you.
#3: A Need for Money to Invest in Your Future
We never know when investment opportunities may come our way. An opportunity like this could take the form of an amazing educational opportunity, but could also be the chance to invest in an up-and-coming business. åÊIf you have a chance to better yourself and your future, it is pretty hard to pass it up. Unfortunately, a lack of funds may force you to.
If you are in a situation like this, a personal loan may be considered. However, this should be done only after weighing your options and making reasonably sure that the investment will pay for itself after a short amount of time.
Looking to take out a personal loan for one of these reasons? Please contact us at Credit24! We all need a little help from time to time!