It’s quite easy to slip into a financially stressful situation. Hard times impact even the best of us. While financing may not be the first thing on your mind in the face of tragedy, a personal loan may be the best option to help you avoid long-term financial burden. If you’ve never taken out a personal loan, you will want to understand what exactly a personal loan is for. Essentially, a personal loan can be used for just about anything as long as the lenders know what you want to use the money for and that you’re trusted to pay them back.

A personal loan is typically fixed at a specific interest rate and can be used for multiple reasons such as; consolidating credit cards, paying for a much-needed car repair, funeral expenses, or even paying off medical bills. We’ll dive into the specifics of each scenario below.

Consolidating Debt

One of the most common reasons to take out a personal loan is to consolidate debt into one monthly payment. We often find ourselves applying for more credit cards to pay off old credit card balances. Unfortunately, this process can be a vicious cycle. What you should consider doing instead, is taking out a personal loan to consolidate the balance across all of your cards into one monthly payment. This allows you to pay them all off at once instead of fluctuating between the cards which normally have different interest rates. In addition, you could earn an interest rate that might be considerably lower than your APR on your credit card, thus, saving you money in the long run.

Car Repair

We all know how much we rely on our vehicles. Without them, life can get complicated very quickly. Simple tasks such as driving to and from work, picking up kids from school, or even food from the grocery store becomes a headache. Taking out a personal loan in this situation could be a smart move to get you back on the road as fast as possible. Before you swipe a high-rate credit card for an expensive car repair, consider applying for a low rate personal loan!

Funeral Expenses

Losing a loved one is never an easy thing. The last thing you need on your plate is worrying about the expenses. Often times, we find the prices of an average funeral to be very costly. This might be a surprise for many of us, especially if we didn’t have adequate time to prepare for such expenses. A personal loan in this instance could be just what you need to affordably cover the costs. You could save a substantial amount from interest charges alone, since personal loans traditionally have lower interest rates than credit cards. Launch is always looking to help our members during these tough times.

Medical Bills

Medical bills can be quite costly, especially if you don’t have health insurance. In addition, procedures are expensive and add up quickly. If you find yourself reaching for the credit card or applying for another card in order to pay off medical bills, it might be time to consider a personal loan.

Final Thoughts

You can always count on Launch CU to help you through hard times. We understand how easy it is to fall into financial stress. Don’t get overwhelmed with financial choices. We make things easy and explain in detail how everything works in person, providing you with the much needed one-on-one time to answer all your questions.

If you think a personal loan could be for you, apply online or call one of our Loan Specialists at 321-456-5441. Remember, Launch CU is there for you.