Home Improvement Tips with a $10,000 Personal Loan
3 min read
Posted on December 21, 2021
From helping you consolidate existing debt to giving you the capital needed to upgrade your property, a $10,000 personal loan could give you options you otherwise don’t have for everyday life circumstances. If you run into emergency circumstances outside of your control, personal loans could give you a cash cushion to see yourself through to brighter days. As with any financing method, it’s important to understand how to use a loan to grow your wealth instead of shrinking it.
To discover three potentially beneficial uses for a $10,000 personal loan, check out our list below.
1. Use Your New Personal Loan for a Home Improvement Project
Taking on a home improvement project could be a good way to increase your property’s value. Whether you choose to hire a contractor or go the DIY route is up to you, but you’ll need to budget accordingly. Doing everything yourself could save a significant amount of money on labor costs. However, a professional contractor could save you valuable time and potentially money in the long run, especially if you’re not handy. A reputable contractor may even know what updates help increase home values the most in your area.
One home improvement project that’s well worth the effort is adding a manufactured stone veneer exterior, according to Remodeling Magazine. By applying stone veneer to the exterior of your home, you could enhance the appearance of your property and add curb appeal. An added bonus is that while the average cost is slightly above $10,000, this update has a 92.1% return on investment, according to the 2021 Cost vs Value Report.
Another worthwhile home improvement project that could improve your home’s value is a new garage door. The report found that the national average cost for replacing a garage door was $3,907, with a value at sale of $3,663. That amounts to 94% of your cost recovered – and over $6,000 of a $10,000 personal loan leftover to tackle other projects!
2. Fully Repay or Consolidate Existing Debts
Credit card liabilities and other consumer debt, such as retail store credit cards, can have high interest rates. In fact, some retail credit cards charge annual percentage rates (APRs) of nearly 30%, which is almost double that of general purpose card, according to Money Magazine.
With hefty monthly payments eating up a significant percentage of your income, it can be tough to ever get ahead. Fortunately, a personal loan with a lower APR could help ease the pressure. If you obtain a $10,000 personal loan with a low APR to pay off higher interest rate debt, you could save a lot of money. And with the money that you save, you could work with a financial adviser to invest elsewhere.
In addition, a personal loan for debt consolidation could help save you time by simplifying your repayment schedule. Instead of having to manage multiple payments on multiple accounts each month, you would only have one account with one recurring due date. With all this extra time, you may find new ways to increase your income and pay down your loan even faster.
3. Pay for Emergency Expenses with a Personal Loan
Unfortunately, a medical emergency often results in a financial emergency, too. For instance, even the simplest healthcare procedures are costing more these days and aren’t expected to get cheaper anytime soon: The Centers for Medicare and Medicaid Services (CMS) project that healthcare costs will climb to $6.2 trillion, or about $18,000 per person, by 2028 and will represent about 20 percent of the gross domestic product (GDP).
Even a good health insurance plan doesn’t cover everything, and hospital bills can be daunting. Instead of draining your savings to pay for medical expenses, you might consider using a personal loan with a fixed APR and terms that match your needs to help pay off these costs. But don’t make a hasty decision. It’s wise to compare rates and terms from different lenders.
Find a Lender that Makes Your Feel Comfortable
As with any form of debt, it’s extremely important to use a personal loan responsibly. Responsible borrowing, such as for the reasons listed above, may help you reach your financial goals. If obtaining a personal loan is right for you, we encourage you to research your loan options (rates, terms, etc.) until you find a lender offering a loan that fits your criteria.
To view competitive personal loan options, click the link below.
The information provided in this blog post is not intended to provide legal, financial or tax advice. We recommend consulting with a financial adviser before making a major financial decision.