Have you ever wondered how to pay your bills and debts?
There are just times that we’re running out of cash and seems like the payday will take forever to arrive! What if your bills are waving? What if your insurance needs to be settled but you lack a budget? These times will surely put you on a hot seat, and decision-making needs to be done immediately. If you’re wondering if “Personal Loan” is a good resource, keep reading below.
What is Personal Loan
Before we figure out the benefits of a Personal Loan, here’s a few explanation about Personal Loan:
- Personal Loan is the money you borrow from a lender, bank, or financial institution.
- Personal Loan amount will depend on your credit score.
- Personal Loan can be paid within months up to a year, depending on your agreement to the lender, bank, or financial institutions.
- Personal Loan has interest rates.
Personal Loan as a good resource
Getting a Personal Loan can be a good resource if you know how, where, and when to use it.If you will utilize your personal loan to one of these examples, then Personal Loan is a good resource for you:
- Paying for your overdue bills – Don’t wait until your bills are on a pile. A personal Loan will be a good resource in paying for your past due bills.
- Renovating your home – Nothing beats a good home. Renovating your home is one of the “life goals” of every Filipino working class.
- Starting up a business – Investing your personal loan to a business means doubling up your finances. Starting up a business without investment can be very exhausting so be sure to use your Personal Loan wisely.
- Upgrading your business – Purchasing new equipment or system for the betterment of your company.
- Paying for your kid’s education – Paying for tuition, miscellaneous, and other fees
There are still more reasons and ways to utilize your Personal Loan wisely. Just be sure that your personal loan will go a long way and will help you achieve that financial goal.
Note: Financial goal means managing, saving, earning, spending, and investing your own money.
Personal Loan as a bad idea
There’s always good and bad consequences in every action and decision. If some of these ideas will bother you, then a personal loan is a bad idea for you.
- You’re having difficulty in managing your salary, money, and savings – This is when you keep asking why your paycheck isn’t enough or where your savings go.
- You’ve got a lot of debts – If you have a lot of debts and have no plan in paying for it, then getting another loan isn’t a good idea.
- You’ve got impulsive behaviors – It can be a “one-day millionaire” syndrome where you tend to spend all your money without thinking about the possible consequences.
- No concrete plan – This is when you feel like holding a large amount of money but no plans in utilizing them.
If you’re still hesitant whether getting a Personal Loan is a good resource or not, read the Pros and Cons below:
Pros of Personal Loan
- Can support your immediate needs like paying for electricity, house rental, gadgets, and more.
- Can fund your kids’ education.
- Allows you to start up or upgrade your business.
- Can fund your “life events” like weddings, kids’ baptismal, and debuts.
Cons of Personal Loan
- If you applied for a Secured Personal Loan which requires you to offer an asset, the lender holds it until you pay the amount in full. In case you’ve missed your monthly payment, the lender has the right to sell or possess your asset.
- High-interest rate.
Note: The interest rate will still depend on your financial institution, bank, or lender.
For more information about Secured Personal Loan and Unsecured Personal Loan, Read this:Money Matters “Different Types of Personal Loan You Can Choose From
Make a wise decision.
Applying for a personal loan can either be healthy or bad for you. A personal loan is like receiving your 13th month pay every December — full of happiness, excitement and plans to spend it. And just like how you intend to use your 13th-month pay, may you also keep in mind the following:
- Your main reason/s in applying for a Personal Loan.
- Will it affect your budget and credit score?
- Will it meet your financial goals?
After all, it is still your choice whether getting a Personal Loan can be a good resource for you and for your future.