How you can save money via a personal loan
3 min read
Last Updated on July 27, 2021 by EricJones
We all face situations in our life wherein we encounter financial challenges and one has to admit, it is not a cake walk. Dealing with monetary issues can be difficult and stressful. If not checked in time, it can lead to severe problems like piling of debt, bankruptcy etc. You may be caught in the vicious cycle of debt and EMIs.
However, if you plan wisely and try to control expense Vs income ratio. It is definitely possible to have a smooth functioning financial life. There are multiple ways to save money and doing it via personal loan is a new idea. Yes, you can save money using personal loan too. Wondering how? Below are some of the fantastic ideas through which you can save money via instant loan –
1) Helps in consolidation of your credit card debt –
Surprised? You don’t need to be. A personal loan can be very helpful in paying off your credit card debt. Generally a loan has lower interest rate as compared to credit cards. This is one of the most frequent reasons why a personal loan is used to repay credit card debts. Credit card debts have an exorbitantly high rate of interest and even the minimum monthly amount due is high because of the charged interest. In such cases, availing a loan with low interest rate to pay off your credit card debt is always helpful.
2) Personal Loan Can help you with a big-ticket expense –
You may encounter some situations wherein you would have to spend a big amount in one go. Such occasions may be of a wedding, hospitalization, vacation, higher studies, renovating your home, etc. For all these events, you may require a considerably high amount to pay at once. Availing a personal loan for such cases can be a mindful and feasible solution. As lenders do not have any restriction on the end use of the personal loan. It is allowed to be used for any purpose you may deem as fit. The only thig you must be careful about is to calculate the loan expense carefully and plan your finances well.
3) Affordable and customisable option –
A personal loan can be very easy to obtain, and the amount gets disbursed very quickly upon easy verification and approval. You can customise your loan by altering the tenure of your loan as low as 6 months to as high as 10 years approx. If you want to save your money. You would want to opt for shorter tenure and try to repay your loan as soon as possible to avoid paying extra interest on your loan amount.
4) Helps in improving your credit score –
You are considered to be at a higher risk by your lenders if you have credit card debt & have expenditures close to your spending limits because this increases your credit utilization ratio. Here is the point where personal loans come into picture. If you replace credit card debt with a personal loan, it can help you with credit utilization. As loans have fixed terms of repayment and credit cards happen to be revolving loans. You have a defined time period to pay back the loan.
5) Dodge hidden fees and charges –
When you are planning to avail a loan, you tend to look at every minute detail of the loan like the fees, charges, taxes, payment fees, pre-payment charges, loan APR etc. Hence, you cannot possibly have any surprises pertaining to the extra charges that come along with your loan. You get a chance to make a well-informed decision after understanding all the fees and charges that you may incur.
To sum up, getting an instant personal loan to repay your credit card bills can help you save money. If the loan has low rate pf interest. You should always try to avoid a loan that can be hard to repay due to high rate of interest.
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