Five insider tips for using a personal loan

Not limited to major purchases and debt consolidation, there are many reasons to consider a personal loan.

08 Oct 2019 | Home finance & property | Share:
Five insider tips for using a personal loan

While most people think of personal loans to finance a wedding, holiday, or to consolidate debt – there are many other ways they can be used.

Start a small business

Ever had a great idea for a small business or side hustle to supplement your income? A personal loan could provide the cash you need to get started.

Or, depending on your circumstances, you may be better suited to a business loan.

Cover medical costs

Healthcare can be expensive, and even with private health insurance, there may be some out-of-pocket expenses.

A personal loan could cover your medical bills and help pay for your expenses throughout your recovery.

Live a greener lifestyle

With climate change a growing concern, many of us are looking to install solar panels and energy-efficient appliances.

These upgrades can reduce reliance on fossil fuels, but the initial expense can be costly. With a personal loan, you can go green sooner.

Reduce lenders mortgage insurance

If you’re buying a house without a 20% deposit, you may need to take out lenders mortgage insurance (LMI), which covers the lender if you default on your loan.

A personal loan could cover the difference in your deposit – and see you avoid this fee and pay less interest in the long term.

Fund a vintage vehicle purchase

Some car loans come with vehicle age restrictions, which can make it challenging to finance a classic car.

With a personal loan, you can purchase a rare gem and drive away in the car of your dreams. Or, if you’re a boating enthusiast, it could see you sail away sooner.

To learn more about personal loans, contact a Liberty Adviser today.