A small personal loan is generally an unsecured loan, which means you don’t have to use any of your assets as collateral. It’s also not specific to any required use - so the good news is, you can use the borrowed money for just about anything.
But of course, you don’t want to take out a loan and then waste it by spending it on something that’s unimportant. That’s why we’ve compiled our list of the top 10 great things you can do with a small personal loan.
1. Consolidate your debts
Debt consolidation is perhaps one of the greatest and most common things you can use a small personal loan for. This simply means you can use the proceeds from the loan to pay off your other debts, leaving you with just one loan and only one regular repayment to stay on top of things. That’s a whole lot easier than juggling multiple debts with lots of different repayment dates.
2. Improve your home
Does your bathroom need new flooring? Or do you have leaky pipes that need to be fixed? Whatever repair or home improvement you’re thinking of, a small personal loan can make it happen. And if you’re a bit handy with the tools, a little can go a long way when you eliminate the cost of a professional tradesperson.
3. Plan for your wedding
According to Moneysmart, the average Australian wedding costs a whopping $36,000, and a survey showed that 60% of couples took out a loan to help pay for it. Expenses from the wedding venue to the food and drinks and everything else that comes with a wedding can really blow the budget, so a small personal loan can come in handy. Even a small beachside wedding can set you back a fair amount when you include the cost of the ceremony, rings, clothing, flowers, and your wedding night hotel.
4. Pay medical bills
If you or someone in the family gets sick, having enough cash on hand to pay for all of those unexpected expenses can present a real challenge. A small personal loan can be substantial enough to pay for care and the medical expenses, and it’s usually quick and easy to get your hands on the money you need.
5. Pay for moving costs
Do you have plans to move house sometime soon? A recent article published in Airtasker highlighted that a local move can cost up to $3,500, and an interstate move can be as much as $8,000. If you don’t have that much cash sitting around, a small personal loan could be your best option to help you cover that cost.6. Buy a new appliance
If your washing machine is cactus or the fridge is on its last legs and you don’t have the cash available to buy a replacement, you don’t have to head to the laundromat or let the milk spoil. Simply apply for a personal loan straight away and you’ll have a shiny new appliance in next to no time.7. Pay for car repairs
It’s hard to get around if your car breaks down and needs a repair, or you're in need of a new set of tyres, or the rego's due! For most of us, our car is an absolute necessity so a small personal loan can help you with these costs to get your car back on the road and back to your regular routine.8. Take a well-earned holiday
Everybody needs a break from time to time, but heading off on holiday can’t always be accommodated by the family budget. But don’t worry, a small personal loan can take you to a place where you can find some peace and quiet for a while - and you can worry about everything else later once you’ve had a chance to relax and unwind.
9. Pay for emergencies
Expect unexpected circumstances to happen in life, like an emergency dash to see a sick parent, home repairs that simply can’t wait or a pet that needs urgent veterinary assistance. A small personal loan can sustain some of the expenses that go with those emergencies and help you get by until the situation calms down and you have the time to find additional funds.
10. Pay those pesky school costs
We might be lucky enough to have Government-funded education, but it sure isn’t free. The cost of school, fees, uniforms, books, computers and school trips adds up pretty quickly and sometimes it can be hard to find the spare cash to pay for it all. That’s why a small personal loan can take the pressure off – you get fast access to cash, so you never have to worry about your kids missing out.
Do some great things with a small personal loan
You can do some great things with a small personal loan. But while you can do most things you want with it, we recommend that you avoid splurging or using it for unnecessary things. Keep in mind that you still have an obligation to pay the loan back, so use the money responsibly.
Don’t forget if you need some quick finance, we’re here to help. Just take a look at our cash loans from $1,000 to find out how quick and easy it is to get your hands on some extra funds. Once a loan is approved, we can usually deposit the cash into your bank account within a few hours!