2. Debt consolidation
Many people look into a personal loan as a way of managing their debts, using the loan to pay off debts they do have so they only have the one loan left to be repaid. Whilst this is a great way over managing your finances into one easy sum, many can often overlook the interest rates which are applied; leaving them paying back over double what they have borrowed and often in a worse financial position than they were previously.
3. One-off payment
Personal loans can often be used for a one-off payment, whether that be for a new kitchen or a fancy holiday. This is an ideal way of paying for something expensive in one payment, rather than spreading the costs and increasing the amount you will pay. However, as previously mentioned, many forget to look into the additional costs associated with the loans they have taken out and find themselves paying more in repayments than if they opted to spread the costs monthly.