Taking out a personal loan in Arizona is very common for people to do and it has many advantages. One of the biggest advantages of a personal loan, also known as an “unsecured loan” is that collateral is not required. That means, there is nothing backing up the loan if it goes unpaid.
In general, these types of loans also have fixed interest rates. That means that your interest always stays the same and cannot balloon out of control as some credit cards do. If you happen to not qualify for an “unsecured loan,” you might be able to use your car as collateral to take advantage of a title loan.
So why are personal loans in Arizona popular? Here is a list of the 8 reasons why many people choose a personal loan.
To consolidate debt
Your debt likely comes in all shapes and sizes. If you have multiple credit cards with varying interest rates, balances, and terms, then consolidating your debt might make absolute sense. This means taking all those debts and rolling them into place for a single monthly payment. Consolidating your debt is advantageous if your interest rates are high and your multiple payments are overwhelming. This happens to people all over the state of Arizona and they seek relief with a personal loan. You can manage your debt more effectively and keep it in good standing with your credit score too.
Lower current interest rates
Interest rates break the bank. They tend to prevent you from paying off your debt and paying it off quickly. You can shop around for a personal loan and find an offer that is less than your current interest rate. This allows you to finally see an end date of your debt and make managing your payments easier.
Finance home remodeling
Does your home need updating? Perhaps you need a new roof, a new kitchen, solar panels, a resurfaced swimming pool, or new flooring. If your home needs a facelift in any category, then a personal loan might do the trick. This is perfect if you have little to no equity in your home or if you are not interested in getting a home equity line of credit (HELOC).
Pay for a wedding
If you are engaged and trying to figure how in the world you and your fiance will finance a wedding, then a personal loan might be your solution. Let’s face it, weddings are not cheap. There’s the venue, the food, the photographer, the DJ, the flowers, the dress and so much more. According to businessinsider.com, the average cost of a wedding in 2018 was $33,391! That doesn’t even include the engagement ring or the honeymoon. While the cost of your wedding will depend on where you live and your taste, it is safe to say that weddings are expensive. A personal loan ends up being a solution for many couples.
Help with moving expenses
Planning to move? It can be pricey! You need movers, a moving truck, and time. You may also be ready to update your furniture and some belongings. All of these things cost money, and if you have a lot of stuff to move or you are moving a far distance, then you might need a loan to help pay for all of this.
Assist with funeral expenses
Sadly, funeral expenses end up being a popular reason to take out a personal loan. The unexpected tragedy is difficult itself, but funerals are also expensive. The cost comes with the casket, burial plot or cremation expenses, funeral director fees, transportation, etc. If the deceased did not have sufficient funds in their estate or a burial insurance policy (also called final expense policy), then the cost becomes the family’s load to bear.
Medical bills can stack up quickly, especially if you do not have insurance. Many hospitals will work with you and usually can make good payment plans. However, sometimes they add up. Dental services like orthodontics are a very popular reason why you might take out a personal loan. Cosmetic surgery, fertility treatments, bariatric procedures, medical travel, and aftercare are also popular reasons to use a personal loan. Child adoption and related expenses can also be covered by a personal loan in Arizona.
Take a dream vacation
You only live once and that is another reason for taking out a personal loan. A dream vacation might be worth having a loan. Whether your dream is to backpack across Europe or drift away on a two-week luxury cruise, a personal loan could be the way to finance it. Vacations can end up being super pricey, but they are so worth it.
Personal loans are very popular in Arizona and for many good reasons. Whether you seek to consolidate your debts or finally take that luxury dream vacation, there is always the option to finance it all through a personal loan.