On other finance blogs I often hear people talk about personal loans as some evil thing that should be avoided at all costs.
While there are definitely times when you should be avoiding borrowing money, you shouldn’t discount the potential to manage your finances with a personal loan.
Here are some ways I’ve personally used personal loans to my benefit:
Borrowing For A Used Car: When I got my first car, I had some money saved up, but not enough to afford something reliable. Admittedly I also had some pressure to get a car that I wouldn’t be embarrassed to drive. So a personal auto loan was able to bridge that gap to get a vehicle that wouldn’t break down and would also keep me happy. It sure beat the alternative of taking the bus for another year or two with a very inconvenient route. That bus trip was wasting so much time and often put me in a bad mood. Continue reading
There comes a time when every young adult will inevitably have to return their parents’ car keys and decide whether to buy their own set of wheels or not. Whether that time comes in high school, during college or sometime after grad school graduation, there’s no doubt that eventually you’ll need to think about buying a car of your own before you start your career. But how do you go about buying your first car when your future seems uncertain and your current cash flow may be lower than you’d like? Keep reading to find out what you should consider before buying your first car.
- Cash flow. Your financial situation can play a big part in what kind of car you can afford. Are you a full-time student living off of a stipend from your parents? Or, do you have a job that can help you pay for your new car purchase? Depending on what your financial situation, you may be able to set a realistic car buying budget with that income information.
- Condition. Before you go car shopping, you should consider what condition of car you can afford. For example, you may have your eye on a new car, but a gently used pre-owned car would likely be more affordable.