3 Situations a Personal Loan Can Save You From!

Whenever life gives you lemons, make lemonade - they say. Today, we discover how personal loans can be just the thing you need to avoid tough financial scenarios like the ones we've picked out.

Everybody, at least once in their lives, stares a financial crisis right in the eye and wishes they had a sudden windfall of cash.

While we would love to discuss how almost impossible striking a king's ransom jackpot is, we are prompted by the value of personal loans in money tight situation.

Perhaps a sticky credit condition might not be able to grant you liberty in flexing your personal loan muscles, but assuming you have a healthy record, you could find yourself being saved by a personal loan, especially if the following four have happened to you.

Insurance Insufficiency

Did you depend on your company's medical insurance and now find it isn't enough to cover your medical bills? Or perhaps a family member does not have insurance but needs medical attention urgently.

Private and Semi-private hospitals usually require admission deposits that can go into the thousands if the treatment in question is expensive. Beyond that, some medical instances may not be covered even by comprehensive insurance policies (such as maternity costs and related complications). All of these cost money - that if not in sufficient supply, will certainly welcome the help of a personal loan.

Ringing the Alarm Bells at Your Wedding

Handling difficult relatives is hard enough on your big day, the last thing you need is to worry about how to pay the caterers at the end of the night.

If you do opt for a personal savings contribution to your wedding and can still survive the numerous bills being heaped onto you after, good on you. But what if your savings pot just isn't stretching as far as you hoped? You can't cancel the wedding and pull a Runaway Bride/Groom trick at this late hour - a personal loan may help to tide you over.

Wedding costs can go up to umpteen thousands of ringgit (between RM30,000 and RM80,000 on average) and an instant injection of cash can help you if what you had initially saved turned out to be insufficient.

From family experience, this writer would tell you that there will be a lot more to be accounted for which might need the saving hands of a personal loan – much better option than scrambling for last minute financial boosts from friends and family if your savings have been depleted. Ouch!

Cash-Strapped Home Furnishing

Decorating the new place can be a pain in the wallet – we do admit. Furnishing the home however can be just as important as the source of its financing.

While some choose to take their time and furnish bit by bit, others opt for the personal loan sweepstake. The reasons are numerous and sometimes can be as simple as needing the items. If you have a family of four or a new baby - there is certainly great difficulty in buying just one bed or chair to accommodate the lot of you. In such a situation, the personal loan will be the saving grace you need.

But there are other, smaller situations in the home that may warrant the loan. Is your home overrun by a termite infestation? Pest control can go into the thousands. Or how about the breakdown of a major appliance such as a fridge or washing machine? Both are equally essentially to a family and aren't exactly cheap if you earn minimum wage.

Home maintenance is an expensive thing. From the furniture to fixtures and even the structure of the house. Roof and piping issues can easily burn massive holes in your pocket.

No doubt some are able to do it, but some on the other end of the spectrum end up in poor monthly financial management and see themselves really scraping through until the next paycheck. Although a personal loan incurs interest - it helps those who wouldn't usually be able to afford living necessities off the bat do so in a regularised, piecemeal fashion.

Inexhaustible Credit Card Interests

There are many ways to sort the above problem, but we found a truly sure fire way of preventing you from further sliding into a meat-grinding pit of financial turmoil.

Having too many credit cards isn't such a bad idea with scrupulous swiping, but reverse the nature and you might be stuck looking for a balance transfer to sort you out.

That might be the all important very first step in realising financial mismanagement as there are a range of balance transfer programmes offered by banks with interest rates as low as 0% stretching up to 24 months.

However, balance transfers are restricted to the credit limit on the card onto which you want to transfer. If your accumulated outstanding amounts are too much to fit - a personal loan will offer the breathing room you need.

Also, do remember that credit card interest rates on outstanding balances post the balance transfer promotion period, will eventually spike up to the common 16%-18% per annum which could force you take uncountable steps back from a decent run of clearing debt.

Consolidation personal loans have fixed interest costs over the tenure, negating this problem as well. If your load is more than a balance transfer can fix - then a good consolidation personal loan will be just what the doctor ordered.

Cometh the Hour, Cometh the Loan!

Other than the scenarios above, getting a personal loan approved is equivalent to a bear hug in the winter's cold in various other situations – from a financial stand point of course.

The obvious and primary key to the discussed matter could be driven by personal savings protection which could be used in other ways to multiply itself like a fixed deposit account for instance.

Whatever the reason for your personal loan application, we sternly believe that a placing all things financial under the microscope is essential – even the way you handle your personal loan!

If you think it's not only the answer to your problems but that you will be able to handle it like a perfect paymaster - find the best loan for your needs with our personal loan calculator.

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  • bill

    never occurred to me that i could use personal loans for times like these. great stuff guys!

    Reply
    • jacky

      ahhhh a stress free wedding is what im talking about! tonnes of other payment just pop out of no where! :D

      Reply