I don’t know about you, but it seems wherever I go these days, I am being offered credit. Seriously – every time I go shopping or online at the moment, it’s interest free this, low rate that. Even buying something as innocuous as milk and bread at the supermarket, I’m being bombarded with offers for credit cards and easily secured finance.
It got me thinking about the ways we use different types of credit, and after speaking to a number of friends, I discovered that there was a bit of a misunderstanding about just how to get the most out of each finance option.
So, I’ve put together some tips on the wisest ways to use a Personal Loan.
Buying a car remains one of the main reasons Aussies opt to take out Personal Loans. We’re a nation of drivers, and whether you’re in the market for a new or used model, the repayment and term flexibility of a Personal Loan seems to suit many of our needs.
What’s more, shopping for your first or next car can be a moment to moment prospect – you never know when you’re going to fall in love with that perfect set of wheels! It’s good to know that when this happens, you can have a Personal Loan secured fairly quickly (in as little as 24 hours) so you can get the deal done.
If you’ve had issues with multiple credit suppliers in the past, and are struggling to keep track of all your different providers and repayments, not to mention different interest rates, a Personal Loan can help make your debt situation more manageable.
Combining all your smaller debts into one with a Personal Loan lets you simplify things – one easy repayment plan, one interest rate. Consolidating your debt in this way could help you eliminate your debts sooner.
Holidays & Weddings (you know, fun stuff!)
Getting away and getting hitched can be expensive undertakings. Ordinarily, most people would tell you the best way to go when paying for one of these events would be to use savings accrued in a High Interest Savings Account. However, life and circumstances don't always bend to our will, and you might find yourself a bit cash-strapped when planning one of these important milestones.
If you need a little helping hand to make your holiday or dream wedding a reality, a Personal Loan can be a really handy option - just make sure you're confident that you'll be in a good position to make your repayments once all the fun is said and done.
What to avoid
In a nutshell? Silly mistakes. If you're willing to take out a Personal Loan to consolidate a couple of debts you've accrued on multiple credit cards, don't then turn around and leave both cards active. If you think you need one for convenience, by all means hang onto it, but remove the temptation to max out the other card you've just consolidated by shutting it down.
Our expert lenders are just that – experts, and they’ve been helping our customers reach their financial goals for over 70 years.