A personal loan can be a helpful tool when it comes to managing your finances—as long as it is used for the right reasons and in a responsible way. However, there are many taboos that can easily be associated with accumulating debt, and many people believe that taking out a personal is actually bad idea. Under the right circumstances, a person can reap the benefits of a getting a personal loan.

Below are four possible signs getting a loan could be a good idea to help improve your personal financial situation.

1.You CAN save money while carrying debt.

Personal loans typically have low interest rates compared with most credit cards. In Australia, the interest rates on most credit cards starts around 10% and go as high as almost 20%, with average rate of many cards being around the 12 to 13 percent mark. Let’s say you have two cards that are carrying a high balance at an annual interest rate of 20% for each account. In essence, you’re actually paying an annual rate of 40% for the entire amount you currently owe!

Currently, personal unsecured variable loans in Australia have an interest rate of approximately 13.5%. Imagine reducing that interest rate from 40% to 13.5%? These are approximate numbers of course and are meant to be used as an illustration to show you that obtaining a personal loan to consolidate and reduce the amount of money you’re paying on interest alone is actually a great idea.

2.Help high moving costs.

High moving costs may not be as common as accruing a high amount of personal debt, but it could happen. Many Australians actually end up relocating overseas or across the country for one reason or another, which could cost them an arm and a leg. Sometimes, funds like that are not always readily available. Obtaining a personal loan may the best way to relieve some of the financial burden and help keep the cash flow nice and fluid.

3.Paying for expensive car repairs.

Depending on where you live and what you do for a living, having access to a reliable car could be a critical component of being able to earn money and provide for your family. If you’re in an accident and let’s say you don’t have right amount of insurance to cover the repairs, or your repair is really high, taking out a small personal loan to cover the damages may be your best and only option to get your car on the road again.

4.Home improvements.

In the case where a person wants to make home improvements, but doesn’t have the required equity to borrow against their property or home, obtaining a personal loan may be the only way to go. Making upgrades to your home helps increase its value and makes it much easier to sell when you put it on the market. In this case, taking out a personal could help you gain more than anything.

If you are looking for a Sunshine Coast loan, talk with one of our lenders to see if Ethica can help you get the funds you need.Visit our lending services page for more details.