In the fast-paced world we live in today, we often need or want things before we have the full purchase price. We have all grown up using credit and it seems like most generations today prefer to buy now and pay later. But, we also know that it’s prudent to save our money. Here are five situations where a Personal Loan can save you money.

1. Paying off Credit Cards with High Interest Rates

We have all heard the stories of people overburdened with credit card debt. Unfortunately, many credit cards that we intended to pay off right away have extremely high interest rates. If you have credit card(s) debt, and the interest rate(s) fees actually begin to add up to more than the monthly payments you can afford – it might be a good time to talk with your banker and do a personal debt consolidation loan.

2. Making Large Purchases with a Loan, Not a Credit Card

Even though it’s easier to just pull out your credit card for a large purchase, in many cases it’s actually better to use a personal loan instead of credit card because the rate for a personal loan is usually lower than a credit card rate.

When you know you are going to be purchasing furniture or appliances or something that your will want to pay for over time…consider talking with your banker for a personal loan.

3. Pay Less Interest with Shorter Repayment Terms

Typically, a credit card will have a revolving line of credit, which means that you will have a certain amount of credit (your limit) always available to you for an undetermined amount of time. The debt is repaid periodically and can be borrowed again once it is repaid. Because you have credit available, you may be tempted to keep using your credit card for more purchases and never pay off your original debt or purchases. When you have a personal loan, you agree to pay your loan within a certain period, which is usually 3 to 5 years, but you can discuss shorter or longer terms with your banker. The shorter the repayment terms usually results in less interest paid for the loan.

4. Make Home Repairs Before They Get Worse

If you own a home and had your furnace breakdown, your roof leak, or other home maintenance issues, you know the shock of having to make these home repairs. Sometimes it might be cheaper in the long run to take out a personal loan to make the repairs before they get worse. Replacing home appliances with more efficient ones may save you money quickly. You’ll want to discuss these options with your banker.

5. Saving with Sales or Discounts

Now who doesn’t want an excuse to hit a sale, right? But, seriously, there may be times when the sale is so discounted, that it may be to your advantage to use a personal loan to purchase a product or service. Oftentimes, retailers will have sales at the end of a year that offer to pay your sales taxes, or travel might be inexpensive when the dollar is stronger than foreign currency. Talk with your banker about the potential savings you might have with a personal loan.

When our needs and wants start to tempt us to buy things before we have the full purchase price, think about using a personal loan before you use a credit card, miss a good sales opportunity or get mired in high-interest credit card debt. Talk with your banker about a personal loan to help you save money.