5 Warning Signs You Really Need a Loan

5 Warning Signs You Really Need a Loan

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Whether you’re the head of your family making ends meet, an entrepreneur starting a new business, or a young professional who wants to level up their lifestyle, a personal loan can help you if you run out of cash or don’t have enough savings.

If you do your research, you can find that there are many choices for borrowing money. You can choose to loan from family, apply for salary loans, personal loans, and you can check out online pawnshops, among others.

Here are five warning signs that you need to consider getting a loan now.

1. Emergency Hospital Bills or Medical Expenses

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No matter how careful or health-conscious you are, you can never be fully prepared for medical emergencies. You or your loved one may suddenly need to be hospitalized due to a critical illness any time, and we all know how high hospital bills can get, especially in the Philippines.

Unfortunately, the majority of patients in the Philippines have to pay for their own bills, unlike other countries where the government shoulders hospital bills. Hospital expenses can cost more the longer your stay, and the more critical the condition is. So, this does not favor everyone, as not all patients and their families can afford to pay for these expenses.

Taking a loan can be inevitable in this situation. You shouldn’t hesitate to save your loved one and give them the best care they deserve.

2. Home Purchase

 

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You might want to buy a house for your new family or happen to come across a great investment opportunity like a condo in its pre-selling stage. Since these can cost millions, the best way to pay for them is to take out a home loan.

A house loan is a practical way to buy a property if you want to own a house, but you don’t have enough savings to pay for the full amount. Most banks and real estate companies offer financing options to home buyers at low-interest rates.

3. Education

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Filipinos strongly believe that education is the most important factor in securing one’s future. However, it can be a headache if you don’t have enough money. Additionally, top universities in the country can cost more, especially if there’s more than one child.

College tuition fees get more expensive every year, and it would be a waste if your kids don’t get to continue their studies. But, not only are tuition fees expensive. There are so many other fees to consider such as school uniforms, books, daily allowances, and more.

One of the ways you can pay your kid’s tuition fee is to apply for a student loan. There are various banks that offer this type of personal loan. You can get a maximum of ₱2,000,000 depending on your income and pay it back through monthly amortization.

4. Loan Consolidation

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You might have personal loans, credit card debts, and other loans you’re finding hard to pay off. A great solution for this is to try a debt consolidation loan. This is perfect for paying off multiples loans in one go since you only have to pay once instead of paying separately.

Loan consolidation is also a more efficient way of tracking your finances and reducing your interest rates.

5. Automobile Purchase

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Owning a car is a luxury that not most people can afford. Think about it – what happens if there’s an emergency in the house and someone needs to be rushed to the hospital? You can’t always rely on the ambulance to get there on time, especially with the traffic in Manila.

Taxis or car services like Grab and Uber may be convenient for you on a daily basis, but you’re starting to realize that your monthly transportation costs amount to the same as what you may be paying for the monthly amortization of a car.

Nowadays, cars are available to wider markets, with lower down payments required. It can also serve as a business opportunity if you’re planning to enter the TNVS (Transport Network Vehicle Services) business.

Bottom Line

These are just a few reasons you should consider getting a loan. Borrowing money can be a practical and convenient way to pay for things bit by bit, rather than in one go. Not to mention, you can be more in-control of your finances.

Another convenient way to pay for big expenses is to pawn valuables in an online pawnshop like PawnHero that you no longer use such as a designer bags or jewelry that are just lying around.

There are many ways you can get the money you need for your specific situation. So, make sure to do your research to find the most suitable option for you!

 

Citations: 

http://blog.rainingpesos.com.ph/70/ http://www.pisoandbeyond.com/2014/11/the-6-types-of-loans-that-you-need-to.html https://www.gobear.com/ph/personal-loan/purpose/student-loans http://www.pchrd.dost.gov.ph/index.php/news/library-health-news/4794-the-anatomy-of-philippine-health-care-recurring-problems-challenges-and-solutions

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Gem Muzones

Gem is a contributing writer for PawnHero. She was a news writer who walked alongside protesters in the streets of Manila and a magazine editor who got free passes to product launches and the hippest events. She's a big Game of Thrones fangirl, 1/2 of a budget travel blogging duo for Travels with a Hobo, and suffers from chronic hair dissatisfaction (she changes her hair color every month).