Taking out a personal loan is a fantastic opportunity for you to start getting your life back in order, to invest in something to work towards the future, or to treat yourself after years of hard work and saving, only to find yourself spending your savings on life’s unexpected expenses and emergencies.
Here’s a look at how you can prioritise your life with a personal loan, no matter where you find yourself in life.
I Want a Brighter Financial Future: Debt Consolidation Loans
If you find yourself swimming in a sea of revolving debt, paying off the minimum amount on credit cards each month and realizing that it’s going to take you most of your life to repay them if you continue at this rate, then debt consolidation maybe the solution for you.
Choosing a debt consolidation loan can help you to:
- Get your finances in order and make them more manageable by making one repayment instead of several.
- Reduce your time to becoming debt free by clearing your credit cards now and giving you a repayment schedule for your personal loan. Assuming you take on no additional debt during the term of the consolidation loan, the last payment is the day you are debt free!
- Potentially reduce the overall amount you will repay on the way to becoming debt free. A debt consolidation loan can be used to clear your credit cards, for example, meaning that you escape the trap of just making the minimum repayments on your credit card and only really lowering your debt by a very small amount each month. With a fixed rate personal loan you’ll know exactly what you need to pay, and when.
- Reduce your overall exposure to debt, making it easy to consolidate and rebuild your credit score in years to come.
While debt consolidation is not just a product for people who may be struggling with debts – you might just find it easier to manage one payment or see an opportunity to save money in the longer term – it is generally recommended that when you have a debt consolidation loan that you don’t apply for further credit or rack up further debts of any type.
I Need to Get to Work On Time: Car Loans
Did you know that 72% of Australians travel to work in the car? And that the average Australian commute lasts just under an hour.
This means that for millions of Australians, a car is an essential asset in their ability to go to work and earn a living. If you’re spending a couple of hours a day in the car driving to and from work then you want to do so in comfort, right? You also want to be sure that your car is in decent condition and isn’t likely to break down; very few of us have bosses that are sympathetic towards us not being able to get to work because our car isn’t up to scratch!
This is where a car loan might come in.
When you take out a car loan, you will usually find you can save money against other options for buying a car, such as splitting the cost over credit cards or signing yourself into a hire purchase agreement. Your loan will then enable you to buy the car of your choice, ensuring you can get to work on time and in some degree of comfort.
Remember that a car will improve your life and be useful in other ways, too. If you’re married or live with your partner then being a ‘two car family’ is considered a requisite of the Australian Dream, while as well as being able to get you to work your car can take you across Australia on a holiday and help you get around town to enjoy your hobbies and interests.
As well as buying a new car, you can use a car loan to pay for performance upgrades or repairs to your existing vehicle.
Alternatively, if you’re happy with your car, why not take out a loan to buy a motorbike to get around town in style, or a motorhome so you can finally take that Australian road trip you’ve been thinking about for years.
I Want to Improve My Lifestyle: Home Renovation Loan
The benefits of undertaking a home renovation project are two-fold:
- You improve your lifestyle by treating yourself to a swimming pool, new terracing, or a refitted kitchen and bathroom.
- You add value to your property, which increases your own net worth and makes your property more attractive to potential buyers should you wish to sell in the future. Depending on your mortgage situation you could increase the value of your home to such a degree that you can downsize in a few years and be mortgage free!
The beauty of home renovation projects are that it doesn’t have to cost a fortune either. In fact, many home renovation projects are so affordable that many Australians choose to undertake multiple projects at once.
According to the Service Seeking website, the following are maximum estimated costs for selected home improvement projects:
- Decking installation – $9,000
- Kitchen refurbishment – $18,000
- Bathroom refitting – $13,000
That means that at top end prices you could take out a personal loan of $40,000 with NOW FINANCE and be able to fund all of these projects. If you got cheaper quotes for all these you could get even more done with your loan!
If you’re one of the 1 in 6 Australians who are unhappy with their home you can view our home improvement loan options here.
I Deserve a Break: Travel Loan
In a recent NOW FINANCE customer survey we discovered that 45% of people have a holiday on their personal wish list. Yet, according to Roy Morgan there is only 81,000 active personal loans – out of a total of almost 2million across Australia – that have been used to fund travel costs.
That’s right, personal loans are available for travel purposes, whether you simply want to get around Australia and see more of your home country, or you wish to travel further afield and see the world.
If you’ve spent your life working hard, repaying your mortgage, and have already invested in home renovations, then why not treat yourself to a holiday? Alternatively, if you’re not planning on buying a home and are pursuing a modern alternative version of the Australian Dream, why not take the opportunity to travel and enjoy the experiences that Australia and the wider world has to offer?
Next Steps: Check Your Credit File and Get Your Rate
Before applying for any credit product you should always check your credit file. This will allow you to ensure all the information held against your name is correct and up to date. It also means you can have any information corrected so that when a lender checks your credit file, they see a true reflection of your past financial behavior and current credit status.
Once you’re happy with your credit file and that it’s accurate, it’s time to apply for your loan. When you apply for a personal loan with NOW FINANCE, you can get your interest rate before applying, allowing you to work out what your repayments will be and what you can afford to borrow.
Prioritising Your Life with Personal Loans
Whatever your current priorities in life, NOW FINANCE has a personal loan that can help you.
Begin your application online now or get in touch with one of our personal loan advisors on 1300 275 669 with any questions you may have.
Disclaimer: This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.