The Most Popular Reasons For Personal LoansApr 28, 2019
Personal loans are an accessible, secure, and reliable way to get a little extra cash.
Whether you need money for a home improvement project, a beach escape, or an unexpected repair, a personal loan can be the right choice for you.
Read on for the most popular reasons to take out a personal loan.
1. Unforeseen Expenses
It happens to everybody. You’re living on a budget, trying to save, paying off debt, and you don’t have a lot of wiggle room.
So what happens when you come home to a broken refrigerator or your vehicle transmission goes out?
Most South Africans are only saving 0.2% of their income. While this is better than nothing, it’s usually not enough to cover the cost of a large repair or unforeseen expense.
This is where a personal loan comes into effect. Many people use personal loans to finance the surprise expenses that don’t quite fit into the budget.
2. A Well Deserved Holiday
Not only is travelling a universal hobby, but it’s good for your health. Women who travel regularly are shown to reduce the risk of death from heart disease, and men are 32% less likely to die from cardiovascular disease.
If you haven’t been on a vacation lately, you should consider using a personal loan to fund a relaxing trip.
Your body and mind will thank you!
3. Consolidate Debt With Personal Loans
Did you know that the debt to income ratio in South Africa is almost 73% on average? That means that 73% of your paycheck is spent paying off debt instead of using it for living expenses.
If you have several active loans or credit cards with high balances, you can use a personal loan to consolidate your loans into one smaller, more manageable payment.
Plus, personal loans usually have a lower interest rate than credit card companies.
4. Student Living Expenses
If you’re in school then you know the challenge of making it to all of your classes on time, completing homework, maintaining a healthy lifestyle with fitness and nutrition, and trying to have a social life.
And unless you qualify for free higher education or have a scholarship, then your options for financing your schooling are limited.
Imagine having to add a full-time job on top of everything else you’re trying to manage. It seems impossible.
Many turn to personal loans to pay for school and living expenses. They see they see the loan as an investment in their future.
5. The Wedding of Your Dreams
Research suggests that the average South African couple will spend anywhere from R110 000 to R130 000 on their wedding, honeymoon, and rings.
And if you’re like the rest of us, you probably don’t have that amount sitting comfortably in a savings account in your name.
One of the most common reasons people take out a personal loan is to finance the most memorable and important day of their lives.
If you want the wedding of your dreams, but you don’t have money in the bank, then a personal loan is a quick, easy, and simple way to pay for your nuptials.
If you fall in one of the 5 categories above or your wallet just needs a boost, you can use a personal loan to help you today.
Apply for a personal loan with us for the best rate and a repayment plan that’s customized to your needs!