How to Decide Whether a Personal Loan is a Good Idea 78

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The following article is a guest post.

Although the idea of taking out a loan could strike fear into your heart, it can actually be a good idea in some circumstances.

For example, a home mortgage is a type of loan that you take out from your banking institution to allow you to own your own home. In this case, your home would be your collateral. An auto loan helps you afford a new or new-to-you vehicle, and the vehicle itself is your collateral.

A personal loan is a bit different.

Because there is usually no real collateral offered to the bank to secure the loan for them. Therefore, it is called an unsecured loan.

You will often find that interest rates are higher for personal loans than they are for home or auto loans.

Your credit score will help the financial institution determine what interest rate they offer to you. While good credit scores will win you lower interest rates, there are plenty of financial institutions that do not follow such strict rules and still offer loans for people with bad credit.

Personal loans can technically be used for nearly any personal and legal purpose.

Be aware though that some financial institutions will ask you how you plan to use the money. A personal loan should be used carefully and should only be taken out when you have a clear idea of how and when you will be able to pay it off.

There are many bad reasons to take out a personal loan, but the following four reasons may provide a valid argument for you to look into this type of loan.

Reasons to Take a Personal Loan

1. To Make Home Improvements.

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It may be much wiser for you to choose a personal loan rather than a home equity loan for a home renovation. This will ensure that your home is not used as collateral and will keep you safe from possible foreclosure.

Be sure to use this option if you know that you will get a return on your investment, such as from increasing the amount your home is worth.

2. To Refinance or Consolidate Debt.

By far, the biggest reason why people take out personal loans is to pay off debt. In fact, 49 percent of personal loans are taken out for this reason. Even with bad credit, the interest rate on a personal loan is usually far lower than that of a credit card.

Additionally, if you are not getting sufficient tax advantages from your student loans, you may want to consider paying for your student loans with a personal loan.

3. To Improve a Credit Score.

Taking out a personal loan for any reason and then repaying it on time can significantly help your credit score. This is because you are diversifying your credit portfolio with an account mixture.

In addition, if you have a lot of credit card debt, a new personal loan can improve your credit utilization ratio.

4. To Pay for Medical Expenses.

Using a personal loan to pay for medical expenses is a bit more of a judgment call. It should only be used if your health insurance does not cover the expenses. And if the interest rate provided by the loan is cheaper than that provided by a payment plan at your medical facility.

However, medical care is not cheap. At some facilities, some expenses must be paid before doctors or other medical professionals will continue providing care.

Only you can make the judgment call as to whether or not a personal loan is right for you. If you are sure that you have no other way to pay for something and that you will be saving money overall with your new interest rate, this type of loan may be a good choice.

However, if you have no way to pay back the loan after you use the money or if you want to use the money for risky behavior, such as gambling or playing the stock market, this would not be a wise use of money.

Personal loans do have numerous benefits, such as flexibility and the option to fund large expenses without putting them on a credit card with a steep interest rate.

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5 Ways to Boost Your Business Revenue 7

5 Ways to Boost Your Business Revenue

Every business strives to increase their profit margin to run their operations, expand services and offer more to the customers. But this is easier said than done, especially in today’s environment where competition is stiff.

Businesses don’t foster if they don’t get enough sales and when there aren’t enough sales, the revenue is bound to decline. However, that’s not something which cannot be changed. It takes a few effective strategies and creativity to bring in more sales and boost your business revenue.

Here are 5 ways to boost your business’ revenue:

1. Invest in Online Marketing

A smart move to capture the audience and generate sales is to target people over the internet.

There are more than 3.2 million active users who use the internet, and the number is only growing with more and more people now having access to the web.

These people are your target audience and you only need to reach them to be able to give your business a boost. However, simply spending money to market a business won’t bear much fruit, marketing needs to be done in the right manner.

Social media is a savior that has been providing businesses with the countless advantages they’ve been dreaming about. The best thing about it is that there’s little to no investment when it comes to engaging with customers on social media.

As per statistics, it only takes 5 engagements and creative/informative posts on Twitter and Facebook to do the magic and attract users to your business.

Social media can help bring audience to you, but then it’s up to your services and products to convert them into successful sales and earn good revenue.

2. Automate Processes Where Possible

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How you manage your business gets to play a very important role in how much money you make or how much money you save.

For example, a business having a manual system of taking orders, keeping track of sales information and maintaining inventory will face time-related issues and increased costs. This can be solved by automating business processes where applicable.

A lot of businesses prefer to use an inventory management software to automate processes. Such tools help to reduce overhead costs, speed up processes, decrease complexity and in the end, increase revenue by speeding up the overall flow of the business.

3. Listen to The Customers

Increasing business revenue requires to look into a lot of things but most importantly, it requires to make the customers content with your products/services.

A lot of businesses make the mistake of not delivering what the buyers need. Hence, they keep on losing customership, get lesser sales and the revenue keeps on dropping.

Nokia is a good example of this. The company did not change with changing times and today is at the bottom.

If you’re a small business looking for ways to grow then it is time to add new products to your arsenal. You can engage with customers by creating polls on your social media profiles and determine what they need.

Mature businesses should also engage with customers to determine if the products they’re offering are enough or do they need to replace a few old ones with new ones.

4. Target Custom Audience

One of the fastest ways to generate revenue is to talk to customers who are interested in your products. SEO can help you find such customers if you optimize the content for a relevant audience.

Hire SEO professionals to target a custom audience so that you can have increased sales and generate more revenue than before.

5. Offer Discounts

There is a large number of people who look for discounts on various products and services.

In fact, about 20% people agree that there is a high chance of them buying a product – even if they do not need it – if the product is offered at discounted rates.