Ways to use a personal loan

A personal loan is a way to make significant things happen. It can help you take control of your finances and streamline your debt, or finance something big.

So, what could you use a personal loan for?

1. Consolidate your debt

From store cards to credit cards, many of us have debts. And when we have lots of different debts, things can get complicated – especially when missing payments means paying penalties.

You could take control of your debt by rolling it all into one personal loan. This is known as debt consolidation. Essentially, it means the bank pays off your other approved debts so you’re left with just one to manage and pay off.

Personal loans generally have a lower interest rate than credit cards, which means you might be able to pay your debt down faster. Personal loans can also help you resist the temptation to go on a spending spree because there’s no linked credit or store card.

2. Buy a car

It can take a long time to save for a car. One way to get behind the wheel sooner is to buy a car with a personal loan and pay it off each month. With a fixed rate on your personal loan, you’ll know exactly what your regular repayments will be and how long you have to pay the loan off.

It’s a good idea to get approval for your car loan before you start looking for a car. That way, you’ll know how much you can spend and you might even be able to negotiate the price of the car.

3. Go on holiday

There are some experiences in life that only happen once, like an overseas trip with friends, a honeymoon, or a reunion on the other side of the world. This is where a personal loan can make all the difference and help you cover upfront costs.

4. Plan your wedding

Your wedding is an experience you’ll remember forever, but budgets can often be blown out for the big day. A personal loan could come in handy when it comes to budgeting and knowing how much you have to spend. Paying with a personal loan might also mean that you pay less on interest than if you were paying with a credit card.

5. Get home improvements underway

Is it time to landscape the garden or upgrade the kitchen? Depending on the size of the project and your budget, a personal loan could help you get your home renovations underway sooner rather than later.

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Things you should know

The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.