Disclosure: This post was submitted on behalf of Penny Minding Mom.
You often see articles on the internet about what you should use personal loans for. However, they’re always geared toward emergency situations.
But what about taking out a personal loan for less dramatic reasons? Aren’t there personal reasons to take out loans outside of financial hardships?
We’re here to tell you; yes, you can.
Personal Reasons to Take Out a Loan
While there are some downsides to taking out a loan for personal reasons when it isn’t a necessity, it doesn’t mean it’s a bad idea. In America, 80 percent of us live paycheck to paycheck. That means if we want something expensive, like a car, we have to finance it.
While there are those who say “save up and pay for it outright,” that’s much easier said than done in our society. Sure, you’ll have to pay it off over time, including interest. However, sometimes it’s either get it through a loan or don’t get it at all.
Check out some totally acceptable personal reasons you should take out a personal loan when funds are short.
1. Cosmetic or Elective Surgery
When we mention surgery here, we’re still not talking about emergencies. We’re talking about elective or cosmetic surgery that isn’t vital to your survival or health. This can include breast enhancement, dental surgery, liposuction, excess skin removal, skin tightening, botox injections, etc.
You’re free to do what you want with your body and if you want to change something you’re unhappy with, don’t let anything stop you. That includes not having enough cash upfront.
2. Update Your Kitchen
One of the most common personal reasons people choose to take out a loan is to update their kitchen. Unless your house was built within the last 10 years, your appliances are probably outdated.
However, updating your kitchen isn’t just about getting new appliances. You can also refinish your cabinets, put in a walk-in pantry, and maximize your kitchen space. People who live in older, less open homes sometimes take this time to knock down unnecessary walls that partition the kitchen off from the dining or living room.
3. Go On a Much Needed Vacation
We think one of the best personal reasons to get a loan is to go on a vacation. As we suggested before, if you’re like most Americans, you probably don’t have the extra cash lying around.
However, sometimes work and the people around us drive us to a boiling point. At this point, we either need to step away or turn yourself in before you commit multiple acts of violence.
Sure, you’ll be paying off your vacation for a couple of years, but you’re also paying for your sanity. Additionally, going on vacation with friends or family can provide priceless experiences. Look into some cheap loans and see what kind of options are available to give you a break.
4. Consolidate Debt
One of the most responsible personal reasons you could take out a loan is to consolidate your debt. Over time, we accumulate debt from different sources – credit cards, hospital bills, vet bills, etc. These debts come with varying interest rates, usually higher than necessary.
Taking out a personal loan can consolidate all or most of your debt under one payment. Additionally, you’ll likely end up with a lower monthly payment and a lower interest rate.
5. Remodel Your Bathroom
Do you ever wonder how many people have used the same toilet you sit on every morning? Or how many people’s feet have been in your shower?
If you live in an older home, odds are, you’re not the first person to live there. While a solid cleaning effort can stifle any concerns about previous residents, it might be nice to start fresh with a whole new bathroom.
6. Finance a Wedding
Data tells us that the average wedding is roughly $33,000. While keeping in mind that over-the-top weddings held by the rich and famous can drastically skew these numbers, the truth is – weddings aren’t cheap.
Weddings are common personal reasons people choose to take out a loan. You only get married once (well, hopefully).
7. Start a Small Business
Banks aren’t always the most understanding when trying to take out a small business loan. They often need in-depth business plans, projections, and market research.
However, if you’re looking to start a basic small business but don’t want to go through the hassle of jumping through all the business loan hoops, opt for a personal loan. Just make sure you have done a fair amount of research about how to go about it!
Unfortunately, life isn’t always rainbows and sunshine. For some children, it means they’re put up for adoption. For some adults, it means they’re unable to bear children.
Fortunately, things come full circle with the option of adopting parentless children. However, adoption isn’t cheap, nor should it be. You are paying for a human being.
With the average cost of adoption at nearly $40,000, most people need to take out a loan in order to change their lives, and the life of a child forever.
9. Recreational Vehicles
For some, there’s nothing better than heading out into the great outdoors for a weekend of roughing it. However, for some people, their version of roughing it means taking an RV to stay warm, full, showered, and entertained.
There’s also boats, four-wheelers, jet-skis, and snowmobiles. All of these cost a pretty penny. Therefore, recreation vehicles provide common personal reasons people choose to take out loans.
10. Install a Pool
Lastly, depending on where you live, the summers may be horrendous. Wouldn’t it be nice if you could come home on a hot day, head straight into the back yard, strip down and jump in a pool?
We think so.
However, the average cost of installing an inground pool is just over $35,000. Like most people, you’ll probably need to take out a loan to cover those fees.
What’s Your Reason?
Do you have other personal reasons to take out a loan? If so, weight the pros and cons of financing whatever it is you’re looking to buy. Remember that you’ll have to pay it off for years to come, including whatever interest is added on.
Good luck, and remember to check out the rest of our articles for more content on money and finances!