Top Ten Reasons for an Unsecured Personal Loan!

Could an unsecured personal loan get your finances back on track once and for all? Are you thinking about taking out a personal loan?

We all go through phases when we are struggling with our finances, and start wondering if a loan might be the answer. And it often can be! The thought of taking out a loan can be a bit worrying because nobody wants to get into debt, and it can feel a bit like the beginning of the slippery slope. But sometimes a loan can be the answer to sorting out a financial issue including debts, and may even save you money in the long term.

You may also be put off the idea of taking out a loan in case the lender demands that it is secured on your property or another asset. But it is perfectly possible to get an unsecured personal loan these days, so that should not be an issue. In fact, it is estimated that around 10% of people in the UK currently have a personal loan. So, if you do take out a loan, you’re not alone!

Just for a reality check though, these are the Top Ten Reasons why people take out a loan:

1. Debt consolidation
   It could make good financial sense to take an unsecured personal loan and pay off existing debts such as other loans and credit cards, consolidating debt and leaving you with just one loan with one monthly payment at a fixed rate. Much less complicated to remember, and you can see more clearly how much your debt is and how much it is reducing month by month.
2. Pay off credit cards
   Even if you do not have a range of other debts, but just one credit card, it can be worth taking out a loan at a better rate of interest to pay that off. If you are only able to make a small credit card repayment each month you will probably only be paying off the interest; the credit card balance itself never seems to go down. A loan could pay the whole thing off and leave you with a fixed monthly payment that reduces your debt each month.
3. Home improvements
   Whether you need a new kitchen, bathroom or roof, a personal loan can help, and the home improvements could add value to your property. The sooner you make the improvements, the sooner you can start enjoying them!
4. Car or van
   Many people still use a personal loan to purchase a car for their own use or a van for business use. Whilst there are a variety of car leasing schemes around, if you use a loan to purchase a vehicle you will have full ownership of that vehicle once the loan is paid off.
5. Holiday
   The time may be right for the holiday of a lifetime – perhaps a honeymoon, special birthday or a month off before starting a new job. If the funds aren’t immediately available for seasonal expenses, a loan could be the answer.
6. Luxury items
   Again, it’s a question of timing. Whilst every purchase should be a considered one, if there is something very special that becomes available for someone you love, then taking a loan may be the best way of obtaining it.
7. Family event
   Whether it’s a wedding, a new baby, a special birthday – or sadly even a funeral – family events do not come cheap. A loan can help to meet the cost when the need arises.
8. House move
   Ironically, even if you are moving home to save money, there are expenses involved in the process and some – such as removal expenses – may need to be paid up front. You may need a loan to tide you over and may then be able to pay it back quite quickly once you have moved.
9. Home emergencies
   We all know that sinking feeling when something goes wrong in the home and needs to be fixed. Some things just can’t wait, and if you do not have the money available for emergencies or unexpected bills then a loan may be the answer.
10. Medical expenses
    Not all medical treatment is free. There are times when you need to pay out for dental treatment, eye treatment, physiotherapy, counselling, fertility treatments or some life-changing cosmetic surgery. If the need is there but not the funds, then this could be financed by a personal loan.

Whatever your reason for needing a loan, you are not alone. Loans 2 Go is here to help. As a lender who likes to say YES, we received almost 500,000 loan applications last year! Why not enquire online today? You can also call us on 0330 400 0403, WhatsApp us on 07976 200 597 or email us on [email protected].

*All figures and rates correct at time of writing