5 Ways to Use Personal Loans for Growing Your Financial Future

If you had some extra money available right now, what would you do with it? That’s a valuable question to ask, especially for people interested in growing their financial future.

When you take out a personal loan, you open the door to a range of strategies that can help you save money today and earn more money tomorrow. This one small step can lead to multiple benefits.

5 Ways to Use Personal Loans for Growing Your Financial Future

1. Paying off snowballing debt: If you have credit card debt, you’re hit with interest charges every month. In most cases, credit cards charge high interest rates and those rates can sometimes rise even higher unexpectedly. That leaves you paying larger and larger bills without making much progress at eliminating your debt.
But if you take out a personal loan at a fixed interest rate that fits your budget, you’ll pay less money to eliminate that debt. And you’ll know exactly how much the loan payment is each month. With no surprises, you can plan and stick to a clear budget that serves your financial goals.

According to research by the credit reporting company Experian, debt consolidation is the most common reason that people take out personal loans.

2. Making your biggest asset more valuable: If you’re a homeowner, a personal loan can be a practical way to invest in home repairs or do the upgrades that will make your home more valuable.

According to Bankrate, kitchen renovations are especially powerful in adding to the value of your home. Bathroom renovations rank second. Energy-efficient improvements rank third and they come with an extra financial bonus: If you buy energy-efficient windows or doors for your home, you may qualify for a tax credit up to $3,200.

3. Investing in your earning power: Is there a class you’ve been wanting to take or a certificate you’d like to earn? A fixed-rate personal loan can be a great way to pay for additional education or job training that can add to your future earnings.

According to Fortune magazine, when people earn certifications in their field it can increase their salary by as much as 20%. It also impresses their employers by showing an eagerness to keep on learning and improving.

4. Getting creative: Is this the year when you turn your creative hobby into a lucrative side hustle? Maybe you’re ready to start pursuing the part-time gig you’ve been dreaming about for a while.

If you’ve wanted to open an Etsy shop to sell craft products or begin offering some kind of service in your local community, a small personal loan can be a great way to pay for supplies or cover costs that will come up – including things like supplies, marketing, business cards, and website fees.

5. Celebrating life’s big moments: Sometimes investments can go beyond financial gain – and can enrich your personal relationships or quality of life. A personal loan used to help cover big life events like a wedding, special anniversary celebration, or even a once-in-a-lifetime trip is an investment in your life experiences.

At 1st Franklin Financial, we’re always here to help find the right personal loan solution for your lifestyle and goals as you grow your financial future! Visit your local branch to chat with our “Friendly Franklin Folks” to learn more.