Some people dislike the idea of buying something with credit. To them, it’s just a sneaky way to spend money you don’t have. But isn’t that how we usually buy homes and cars? Mortgage and auto loans are both credits. We repay them over the course of several years. They allow us to live comfortably, even if we don’t have fat bank accounts.
Debts, credit, loans — these things aren’t bad. Sometimes, they’re the only way to provide ourselves what we need. Take students loans, for example. If they didn’t exist, more than 40 million Americans wouldn’t have gone to college.
If you’re against borrowing money, you’re probably referring to personal loans. It’s a type of loan that you can use for anything, from emergencies to home improvement. They’re so convenient that some lenders don’t even ask what you’ll use the money for. They only care that you can and will repay.
Moreover, personal loans aren’t secured by collateral. It’s the closest thing to free money, as it’s also your least expensive borrowing option. So if you can’t afford a credit card, this is your best bet.
What should you buy with your personal loan? Something you like, of course. Below are some examples of fun purchases worth the credit:
1. Gaming Laptop or PC
You can borrow money to finance your dream gaming PC or pay in installments. Gaming PC sellers usually allow installment payments for units worth $1,000 and above. You can make monthly payments as if you’ve bought it with a credit card. What’s more, there’s no interest. Those that charge it won’t include it in your bill if you completed your monthly payments on time. That’s indeed a steal.
You can also buy PC parts and accessories and pay in installments. That’s a brilliant hack to create a customized PC even if you technically can’t afford it.
2. Home Appliances
Now that we’re staying at home most of the time, you’d start paying more attention to your appliances. Maybe your microwave oven is outdated, or you don’t have a coffee machine yet. Thankfully, it’s easy to purchase both with a personal loan. And they’re great investments because they can increase the value of your home or last you for years. Just be careful when choosing appliances. More expensive doesn’t automatically mean better. Go for the best-quality ones with the most reasonable price.
3. A Major Celebration
Of course, you won’t literally buy a celebration, but you can use your loan to pay for a big event. It can be your dream wedding, your daughter’s quinceañera, or your and wedding anniversary party. Any celebration, basically, as long it’s for you or your family.
But if that celebration involves traveling, reconsider. Unless that’s going to be the trip of a lifetime, it’s probably not worth borrowing money for. That’s because celebrations and trips have short-term benefits, but you’re going to repay the money you spent for them for years. If you can save for them instead, do so.
4. Home Improvement Items
Aside from your appliances, your furniture could be getting old and dated, too. If they’re begging to be replaced, you can get a home improvement loan. As its name states, it’s a type of loan specifically for financing home improvement projects. But if you’re not doing major remodeling, you can use a personal loan. That way, you can allot the money left for repaying or buying other items, like new bedding and artwork. A home improvement loan becomes a more practical option if you’d also renovate your kitchen and/or your bathroom.
5. Supplies or Equipment for a New Hobby or Profession
Supplies or equipment related to most hobbies or professions are often expensive. For example, aspiring or professional photographers require DSLRs, camera accessories, and lighting equipment. Those could cost thousands of dollars, and they’re just basic equipment.
So if you developed a new hobby, or found your passion, don’t feel limited by your current savings. You can use personal loans to finance your possible new career. And even if you don’t plan on pursuing it as a career, at least it can make you happy. That’s worth the hassle of repaying your loan every month.
Whatever you wish to buy with your borrowed money, stay in control of your spending habits. Acquiring loans can become an addiction if it feels too convenient for you. So even if it’s virtually free money, don’t forget that it isn’t yours. Only get the loan if you already have a plan on how to spend it and repay it. Otherwise, you’re not yet ready to acquire it.