Personal loans are an excellent way to finance certain events in your life. In fact, the number of personal loans in Australia rose 38.9% from 2020 to 2021. Life is bound to have ups and downs, and you may not always be financially ready to tackle such events. In these scenarios, small personal loans come to the rescue.
While most people plan for contingencies, there are times when you need a little extra to tide you over. Small loans are designed for precisely this purpose. The best part is that the interest rates have fallen drastically, making it the best time to take out a personal loan to meet unplanned expenses or for your dream holiday.
Below are the top five situations when a small personal loan can be your saviour.
Medical Expenses
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If COVID-19 has taught the world something, it is to plan and save for medical emergencies. Millions of people were unable to get the right treatment because they simply could not afford it. Not everyone has insurance, and even among those who did have insurance, not everyone got their medical bills wholly taken care of by their insurance companies.
Apart from such situations, there are times when a loved one is terminally ill or has met with an accident that requires extensive treatment. Insurance plans offer limited coverage, and you are stuck with the rest of the bill. The figures can escalate to several thousand dollars in a matter of days.
In such situations, you can get small personal loans that can help you back on your feet. The advantage is that you can clear the medical bills immediately and repay the loan in small monthly instalments.
Dream Wedding
Couples plan their wedding for months. They have probably dreamt about it since they were children. Your parents will have a wedding fund that you can use, but it may not cover all the expenses.
It is, after all, your special day, and you want to make it even more special. Given that the cost of everything has skyrocketed, your dream wedding is bound to cost you and your partner a small fortune.
You cannot delay the wedding just because you can’t cover the expenses. At the same time, you cannot compromise on that perfect wedding dress, that bespoke suit, the extravagant cake, or the dream venue.
Personal loans are perfect for such situations as they let you splurge all you want to ensure you and your partner get the dream wedding you’ve wanted since childhood. Since they offer multiple repayment options, you can choose to pay it back over the next six months or more.
Car Repairs and Upgrades
Your car is your prized possession, and you cannot do without it for a single day. If the car has a sudden breakdown and needs repairs, you may need a large sum to cover the expense. Your insurance will not cover all repairs, and a personal loan is just the fix you need.
Car fanatics are always looking for something new to add to their vehicle. These are not included in your car insurance, and when something good comes along, you don’t want to miss the opportunity. Again, personal loans are your knight in shining armour. This way, you won’t miss a single thing.
Home Improvement and Repairs
Home loans are for purchasing homes. They don’t cover improvements or repairs. In the event that you want to renovate your home or need some repairs done, you can take a personal loan to cover these expenses. You can make any upgrades or repairs without worrying about how much your insurer will cover.
Due to the upcoming holiday season, upgrades will be a significant part of homeowners’ spendings in the next few months. Taking a short and small personal loan to finance these upgrades is a smart move.
Dream Vacation
The recent pandemic restrictions have now been lifted; people are geared up for revenge travel. That is, live life to the fullest, as you never know what tomorrow will bring. So, rather than saving for the dream vacation, you can take it right now and pay later with a small personal loan.
Moreover, most hotels and resorts are currently offering great discounts in order to attract tourists, so going now will guarantee a lot of savings.
There are occasions when you, either by choice or compulsion, need to incur an expense that is not covered by your savings. Small personal loans are designed for exactly these purposes. They are convenient, easy to apply for, virtually paperless, and offer attractive interest rates.
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