Imagine this: you’ve suddenly found yourself in a situation where you need more money than you already have. Maybe you need to fix up your car after an accident or you want to make a home renovation.
Whatever it is you need your money for, you can get it fast with a smart loan in Australia.
However, if you haven’t gotten a smart loan before, then you might not be sure about making this decision. Is it worth getting a loan, and what are the best reasons for getting this type of loan?
In this article, we’ll cover the excellent reasons why you should get a smart loan in Australia.
Finally, you can get the money you need for whatever reason that matters to you. Read on to learn more.
- A Smart Loan Is Better Than a Payday Loan
When you’re weighing your options about which type of loan you want to get to finance an idea or project, you might have come across the payday loan option. Many people use this type of loan, especially, when they find themselves in a financial emergency.
But with a payday loan, you can end up paying a large amount in interest charges.
This is because payday loans come with short repayment terms. Unless you’re able to get back the cash in this short amount of time, you’ll end up paying because you have to renew your loan.
With a smart loan, this doesn’t happen. You can get the personal loan you need without having to pay hundreds of dollars in interest charges. One great example of a smart loan provider you can use is Plenti.
- Debt Consolidation
Often, when someone needs a personal lender, it’s because they’re looking to consolidate their debt. When you go into this process, you’re taking out a loan so that you can pay off your debt altogether, including other loans as well as credit card debt.
When you pay off your debt this way with a smart loan, you’re using the low-rate loans type.
This is way better than paying off your debts one by one with high rates. You’ll end up being able to pay your debts off much faster than if you were doing it the traditional way.
Additionally, because you’re paying them all off together, you’ll be more organized. You won’t forget about paying off one of your debts and end up in a worse situation.
It will also be easier to budget and plan so that all your debts are paid off by a specific date.
- Moving Costs
When you buy a new home, you’ve likely spent a lot of money already on some of your closing costs and fees. Additionally, you’ve put a large chunk of money into the home itself. But then you find that you have to pay moving costs.
Moving costs can be incredibly expensive. A local move could cost more than $1,000, while a long-distance one could be as pricey as over $4,000.
By taking out a smart personal loan, you can save on these moving costs.
You’ll move all your furniture, clothes, and other belongings as far as you need to, and then pay off this amount over time just like you would your new mortgage.
- Home Remodeling
Another reason why people turn to a low-rate lender is that they have a home remodeling project they want to complete that is slightly out of the range they can ordinarily afford. These repairs might include redoing your electrical wiring or fixing your plumbing.
If you don’t want to get a home equity loan, then a smart loan is a good choice for funding home remodeling in this case.
Home equity loans can be a bit risky because you’re putting your home on the line. This doesn’t occur with a smart loan.
- Appliance Purchases
Another home-related expenditure is an appliance purchase. Even though you may not be planning for it, sometimes you find yourself in a situation where you suddenly have to replace your dryer or refrigerator. Additionally, sometimes you need to replace electronics like:
- Your entertainment center
- Your gaming computer
- Your work technology
What do all of these appliances and pieces of technology have in common? They can be incredibly expensive and are likely to cost more than the amount of money you might have in your checking or savings account.
But they’re also essential to living your life at home like you want to, so you can’t wait to save up to buy them.
This is where a smart loan comes in. You can get the funding you need immediately to buy one of these essential, expensive items, instead of having to wait.
This will also save you money because you won’t have to pay for laptop rentals or going to the laundromat.
- Emergency Expenses
Life is full of surprises, and sometimes these surprises are expensive. If you suddenly have to pay a big fine or for a ticket for a family member to return back home, you can use a smart loan. Another common, though tragic, emergency is having to pay for a funeral.
In addition to being expensive, there are many other costs associated with a funeral, such as transportation, clothing, and some additional expenses depending on what your family does when a loved one is deceased.
Unexpected medical costs are another common type of emergency expense.
If you or someone in your family needs emergency surgery or a hospital room visit, you can’t not go. But it may be too expensive for you to pay for in your current financial situation.
Whichever of these emergency expenses you might find yourself having to pay for, you can make your life a bit easier during a difficult time by getting a smart loan.
The main reason why it’s so beneficial is that you can get your money fast. Other types of loans might take longer to go through.
- Wedding Expenses
When you’re getting married, it’s a beautiful event that you want the whole family and your closest friends to enjoy. However, it’s also pricey. In 2020, the average cost of a wedding was $19,000, which is a high enough number you might not know how to come up with the money.
This is where a smart loan for your wedding comes in.
You can use it to cover the costs of your wedding coordinator, the cake, your photographer, flowers, the bridal dress, and even the cost of renting out the venue where it takes place.
Sometimes, people will choose to buy their wedding or engagement ring with a smart loan.
Because people are often expected to spend three months’ salary, it can help to take out a loan if they don’t make much or are currently between jobs.
Whether you’re paying for your wedding or a wedding-related ring with a smart loan, it can help you make that beautiful moment in your life more perfect and happen when you want it to.
- Vehicle Financing
Another reason to use a smart loan is to finance purchasing a vehicle. If you want to buy an RV, boat, car, or private jet, you can make this purchase possible with this type of loan. You can also pay for a car more easily if you aren’t buying it from a car company.
For example, if you’re buying yourself a used car from a private seller, you can use a loan to divide your payment up the way you would if buying a car in the traditional way.
This way, you won’t have to take out a huge amount of cash so that the sale goes through. It’s far preferable to do this than to spend money from your emergency fund or to empty out your savings account.
Need More Information?
Now that you’ve learned about the excellent reasons for getting a smart loan, you might need additional information. Maybe you want to learn about how a smart loan works, what its rates are like and how you would pay it off every month.
Or maybe you want to learn about other ways you can finance big expenses, such as budgeting for them.
Whatever information you need, you can find it on our blog. Simply go to our Finance/Personal Finance website section, where you can read articles that will help you save money and afford the lifestyle you want.