$38,000.00 is the amount of debt that the average American holds today. That number might seem bad but the truth is, debt allows people to do some pretty amazing things.
Think about itâ€¦ Letâ€™s say that you wanted to go to college or wanted to go on the vacation of your dreams. You might find that while you couldnâ€™t afford the cost of either of those ambitions in one bulk payment, you could afford to pay a couple of hundred dollars per month.
Taking on debt via loan products enables you to do exactly that!
Given the flexibility that loans allow regular people to enjoy, people take out new loans every day. Below, we outline a few of the top reasons why people choose to get that money from lenders.
1. Auto Repairs
There are hundreds of millions of cars on the road right now. That number speaks to the fact that Americans have come to rely on vehicles to effectively manage their daily lives.
So then, what happens when somebodyâ€™s car breaks down? Even worse, what happens when somebodyâ€™s car breaks down and they canâ€™t pay their repair tab?
Without the help of loans, those people might not be able to get to work or pick up their kids. With the help of loans, anybody can waltz into a repair shop and waltz out.
2. Medical Bills
Itâ€™s no secret that medical care in America is outlandishly expensive. Even with medical insurance, families can be on the hook to pay down thousands of dollars a year in bills that they receive from their healthcare provider.
If people canâ€™t get that money and consequently, canâ€™t fulfill their payment obligations, rather than being sent to collections, they often opt into the best personal loans that they can find to pay down their debt progressively.
While itâ€™s an imperfection solution, loans make healthcare accessible to a wider swath of people.
3. Home Repairs
Owning a house is great! That is until a leak springs in your roof.
When things go wrong with a house that you own, unfortunately, you canâ€™t pick up the phone, call a leasing office and have them fix it. Youâ€™ve got to foot the bill for repairs on your own.
Given that repairs like roofing fixes can easily run people over $10,000, low-interest personal loans can help bridge the financial gap that many people run into when it comes to keeping their homes in livable condition.
Did you know that vacations cost a family of four almost $5,000? How the heck can the average person expect to get that money?!
Short of selling vital organs, personal loans seem to be the solution.
Many lenders now offer loans that are specifically built for vacations and may even offer interest discounts if you opt to stay at certain hotels or choose to opt into specific vacation packages.
5. Debt Consolidation
People that have multiple loans from multiple lenders have two big problems.
First, they have multiple accounts that they need to manage which can turn into a headache. Second, each of their loan accounts carries different interest rates, some of which might be quite high.
To solve both of those issues, some people take out a single personal loan that has an interest rate lower than what their existing debt offers. They then buy out all of their debt with that loan to pay a single lender less rather than multiple lenders more.
6. School Expenses
Between tuition, books, food and dorm expenses, college can get pretty expensive. To manage all of those costs, most students take out â€śstudent loansâ€ť which are offered through both public and private entities.
What a lot of people donâ€™t talk about though is that many student loans donâ€™t cover the full spread of a personâ€™s college expenses. This is especially true if all of your loan funding is serviced through the government.
To fill in the gaps, personal loans are a great option for students.
7. Business Ventures
Hundreds of thousands of startups open their doors every year. While most of those startups are doomed to failure, some will succeed.
Those that are successful, in almost all cases, relied to some degree on borrowed money to get their foundation set, their inventories stocked and their marketing campaigns off the ground.
If youâ€™re an aspiring entrepreneur that needs a kick of cash to get your businessâ€™s engine running, personal loans for business are a tried and true option.
8. Tying the Knot
Weddings are supposed to be the happiest day of your life. What a lot of people donâ€™t tell you though is that weddings can also be the most expensive day of your life.
The average wedding in the United States costs over $30,000. Unless youâ€™ve got that kind of cash lying around, youâ€™re likely going to need the help of a loan.
Get That Money!
If you want to go to college, get married or launch a new business, donâ€™t let a lack of funding slow you down. Do what millions of people do every year and get that money you need from lenders that are offering fair loans with low-interest rates.
Debt, when managed responsibly, is a wonderful thing that lets people get the most out of their lives.