Financing is called-upon to meet various funding needs, ranging from major buys to less-significant day to day purchases. Mortgages and other targeted funding are designated for very specific functions, like real estate purchases and other financial needs. But some forms of financing are issued for general use, giving the borrowing spending discretion over how the money is used.
When your personal financial flow calls for flexible resources, a loan without strings attached may furnish needed access to cash. Use these accommodating loans to cover common expenses, such as:
Education – Various funding resources are available for students, including low-interest loans geared to the needs of college students. In the United States the William D. Ford Federal Direct Loan Program furnishes government-backed funding for school expenses. Because interest rates are low and repayment terms include flexible payback options, these state-sponsored loans present a go-to option for countless students in the U.S. But as helpful as it is, this form of financial aid doesn’t always cover the full cost of education, leaving students in-search of additional resources. Personal loans provide a flexible alternative for students, adding to grants, scholarships and other college resources. Although interest rates may be higher on private sector loans than those underwritten by the Federal Government, the flexible solution stands-in for countless students needing college cash.
Home Improvements – Mortgages serve home buyers, extending big-ticket loans for decades. And once you’ve paid-down a portion of your principle mortgage balance, home equity loans furnish another viable borrowing option. As a result, these forms of financing represent the bulk of real estate related lending. Without equity, however, an outside form of funding may be required, in order to cover the cost of home improvements.
Renovations and household upgrades add value to your property, so resources devoted to home improvements represent money well spent. In place of equity financing, personal installment loans are well-suited for covering the cost of residential updates. Interest rates and loan terms from various lenders are published online, giving you the tools needed to compare alternatives and select the most cost-effective form of financing.
Travel – Leisure travel represents an important distraction from the pressures of everyday life. To forgo vacations and holiday trips shortchanges hard work and discipline shown on the job and meeting family responsibilities. In short – you need to take breaks, even when travel resources are thin. Fortunately, personal financing is available to help accommodate this important form of relaxation.
Credit cards are not the most cost effective means of funding family travel, particularly when vacation balances linger and accumulate interest, month after month. When outside funding is required, better financial outcomes are achieved using personal loans to cover travel costs. For those with solid credit references, personal loans offer lower interest rates, compared to credit cards. And installment payments are predetermined, so repayment obligations are easily integrated into your monthly budget.
Vehicle Purchases – Car dealers often extend in-house financing, which may represent the most economical funding alternative for your vehicle purchase. But what if you buy from a private seller? Dedicated auto loans are offered by banks and credit unions, using the value of your car to secure the debt. Depending upon the terms of each loan and your individual preferences, an unsecured personal loan presents another viable alternative for funding a car, motorcycle, or RV purchase.
Holiday Spending – December is welcomed for its festive atmosphere and seemingly endless celebration. January, on the other hand, is dreaded for the financial realities it brings, as holiday bills come due. To avoid sticker shock during the first months of the new year, plan for fourth-quarter holiday spending in advance, establishing affordable means to pay for presents, parties, and other festive costs. A small personal loan, for instance, may bridge the affordability gap, without leaving you burdened with excessive credit card interest payments.
Financing takes many forms, serving wide-ranging spending needs. Among the most expensive types of funding, credit cards have become a go-to convenience, which doesn’t always make financial sense. As you plan for education, leisure travel, home improvements and other customary costs, look to personal loans and other affordable alternatives, to avoid the high cost of revolving credit balances.