Thirties is the moment in your life when the notion of Personal Loan first arises for many reasons. It begins when you might find yourself in a situation where your career might have just started to boom, or you might have finally thought of settling down with a partner or the ‘Eureka’ idea of a start-up would have just struck you. However, the moment you decide to take a step forward, you see there is something holding you back- a steady force not allowing you to move ahead- and you look back to see that it is your “Finances.” Your student loans, credit card payments, rash investments, and other poorly made financial decisions made in the past have finally come to haunt you. To fix those mistakes of the past let’s see how a personal loan can be your savior.
- No need to put up any gold, property, or assets for collateral
- Easy to obtain the loan based on your credit history
Personal Loan might seem the right answer for all your problems at this point, so why not first look at what exactly is a Personal Loan before we jump onto the 4 Pros of taking a Personal Loan in your 30’s that could change your future.
What is a Personal Loan?
A Personal Loan is a form of a loan which allows flexible use, short to moderate repayment options, and relatively fast financing. If you are willing to repay high-interest debt, start a company, or cover an expensive medical bill, a personal loan will help you achieve your target. While a personal loan can be used for just about anything, it’s essential to understand when to avail of this holy grail of an option. It’s a good idea to use a personal loan when it can improve your financial situation or provide the necessary funds.
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Here are the 4 Pros of availing for a Personal Loan in your thirties.
1. Consolidate Credit Cards
Have you stacked up and maxed out all your credit cards? Personal Loans might just be the way out. It could help you merge all the individual card payments into a single monthly chargeable payment. The interest rate for the new consolidated loan could be lower than your individual card payment amount based on your credit score.
It’s always better to be late than never!
2. Investing in your Health
You need to spend money occasionally to save money. For example, if you spend hundreds of people every year on contacts and glasses, you can save yourself in the long run by taking out a personal loan to pay for LASIK operations. Need dental work that your insurance will not cover? A personal loan to repair the problem now may help you prevent costly procedures in the future.
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3. Home Renovation and Development
If you buy a house in your 30s, not only can you get the deck you’ve always dreamed of with a home improvement loan, but it can increase the value of your property in the long run. And if you decide to use the funds to install solar panels or other environmentally friendly devices, you might be able to save in utility costs for years to come.
In addition, a personal loan can help you cover the cost of urgent fixes such as a moldy kitchen or leaky roof, making your home more livable and valuable.
4. Starting a Family
Childcare is expensive. While you may not want to take on a lot of debt before you take on the enormous cost of having a child, a personal loan can help you make it through several obstacles:
- Unpaid Maternity Leave: A personal loan will help you pay household bills and other expenses when you don’t have the money coming in.
- Infertility Treatment: Procedures like in vitro fertilization ( IVF) will set you back more than $10,000 — and insurance doesn’t cover this in most states. If you can’t afford to pay for it out of pocket, a personal loan will perhaps help.
- Adoption and Surrogacy: Both adoption and surrogacy can cost tens of thousands of dollars. A personal loan may not cover all of that, but it can help at least some of the expenses.
- Egg and Sperm Freezing: You may not want a baby now — but neither do you want to write it off. A personal loan can help cover the cost of freezing your eggs or sperm banking so you don’t owe your biological clock.
A final note to ensure you make the right decision – A personal loan can help you make up for the necessary expenses and improve your debt. But, before applying, it is important to weigh both the benefits and disadvantages. It’s also important that you take the time to shop around before applying for one and compare different options.