The subprime personal loan is regarded as one of the most versatile financial products out there. Part of the reason for this is the many uses a borrower can get out of it. Unlike a mortgage, a personal loan can consolidate debt or fund medical emergencies.
This article, however, will focus on life events that could be financed by means of a subprime personal loan.
Marriage is one of the most important chapters in a person’s life. Needless to say, the event that celebrates this is much anticipated. And as statistics indicate, quite costly. Top wedding brand the Knot says that couples who are getting hitched are looking to make the ultimate personal statement on their big day. Many turn to personal loans to augment their savings and make their dream wedding a reality.
Starting a family
This comes right at the heels of getting married in terms of importance and yes, cost. Raising kids is an expense that a couple take on for decades. However, the bills start to pile up during those nine months that precede childbirth. To cope with this, soon-to-be parents take out a loan to ensure that they have sufficient funds.
There is no shortage of retirement vehicles. One can invest in stocks or real estate while making regular contributions to their 401k. Unfortunately, only a few ever to live out their twilight years comfortably. A personal loan can help ease the daily burden for a financially ill-equipped retiree.
It takes years to save up for a Caribbean cruise or a tour of Europe, even for those holding down white collar jobs. A personal loan allows these travellers to cater to their wanderlust at a time when they’re strong and fit enough to discover the world beyond.
A Word of Caution
The life events above should indeed be enjoyed. While a personal loan is a great option, those who intend to use it for a specific milestone should consider the financial consequences that lie before them. Ensure first that you have the means to pay for the loan before rushing to a lender.