6 Types of Bills a Personal Loan Can Help Cover

iQuanti:  Sometimes, you may find yourself short on funds when bills are coming due — especially as prices increase. You may have considered borrowing money to make up for the shortfall. If so, a personal loan can be a good option.

This loan can get you a lump sum of money that you repay in fixed monthly principal and interest payments, making it easy to budget for. Personal loans can be used for many expenses, including your bills. With that in mind, this article will cover six types of bills you could cover by getting a personal loan.

1. Electric bills

The cost of electricity has gone up recently. If you need help with electric bills, a personal loan might be a good option. By taking out a loan, you will have a lump sum for your electric bill and a more predictable monthly payment. Using a personal loan, you may be able to spread a few particularly high monthly electric bills across several months when your bills are lower, to ensure your monthly payment is lower.

2. Rent

Rent is often the biggest expense for people who don't own their homes. Sometimes, people are short on cash when the rent is due. Fortunately, many lenders offer to approve and fund loans within one to two days, and sometimes the same day. This can make rent temporarily affordable when money is tight.

3. Medical bills

Medical bills can be pretty large and take you by surprise, so it's hard to save money for them. If you don't have funds set aside, consider getting a personal loan. Some are available in large amounts, so you might be able to pay the entire bill with the loan.

4. Home repairs

Home maintenance can add up. Even if you're setting money aside for repairs, you might need some help paying for them. You can get a large amount from a personal loan relatively quickly to cover these costs. 

5. Moving expenses

Moving can cost a substantial amount of money. In fact, the national average cost of a move is $1,400. Saving that amount of money alongside all your other financial goals can take too long. Many people instead get a personal loan to cover moving expenses. The fixed payment and lower rate make it easier to move affordably.

6. Credit card debt

Credit cards tend to have high APRs, making it hard to get out of debt. A personal loan can be an excellent tool, allowing you to consolidate and refinance your cards. This will likely score you a lower interest rate and make your payment fixed. It may also help your credit score by lowering overall credit balances.

Consider a personal loan if you need help with bills

As you can see, personal loans can be versatile financial tools. You can use them to cover electric bills, medical bills, rent, home repairs, moving expenses, and more. You can even refinance and consolidate high-interest debt with personal loans to save money.

If you need a personal loan for any of these bills, shop with multiple lenders and get prequalified. This will help you get rates and terms that work for your financial situation and needs.

Source: iQuanti

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Categories: Personal and Family Finances

Tags: Debt, Loans, Personal Finance