An installment loan can come in handy in many situations. While many people use installment loans to cover unexpected expenses like car repairs, leaky roofs, and trips to the emergency room, they can help meet a wide variety of short and long-term goals. Here are six creative ways to use an installment loan.
1. Start a business
If you dream of quitting your day job and starting a business, an installment loan is worth considering. You can take one out to cover the costs of marketing, inventory, payroll, and other expenses needed to get up and running. With an installment loan, becoming your own boss doesn’t have to be a pipe dream.
2. Further your education
Chances are you want to enhance your knowledge so you can excel in your career. Maybe your goal is to learn more about real estate investing. Or perhaps you wish to take your marketing or project management skills to the next level. No matter your situation, using an installment loan to acquire new knowledge and skills may do wonders for your professional life and earning potential.
3. Renovate your home
Unless you built your house and think it’s perfect, it’s likely you have a list of home improvements you hope to get done. Since many home improvement projects can run thousands or even tens of thousands of dollars, an installment loan should be on your radar. It may be just what you need to update your kitchen, finish your basement, expand a deck, or increase your square footage with an addition. Ideally, any projects you choose will build equity and increase the value of your home.
4. Go on vacation
Do you have a bucket list of places you’d like to visit? While you can spend years saving for that beach getaway or trip to Europe, an installment loan can give you the chance to enjoy a trip of a lifetime sooner rather than later. Just make sure you don’t over borrow and focus on repaying the loan as soon as you can.
5. Pay your taxes
Nobody likes a surprise tax bill, but an installment loan may come to the rescue if you’re hit with one. If you owe more money to Uncle Sam than you can afford, an installment loan can help you avoid accumulating serious penalty and interest charges. Before you commit to a loan, do the math and determine if it would be more cost-effective than agreeing to an Internal Revenue Service (IRS) payment program.
6. Celebrate a milestone
Milestones like graduations and weddings are exciting. But it can be expensive to celebrate them the way you want. With an installment loan, hosting that dream wedding or treating your child to an unforgettable graduation party could become a reality. Don’t let finances interfere with your desire to make the most out of life’s greatest moments.
The Bottom Line
Installment loans are versatile financial tools that can make your life easier. While you can apply loan proceeds toward unexpected expenses, consider using them to start a business, further your education, renovate your home, go on vacation, pay your taxes, or celebrate a milestone. Just remember to always do the math to ensure your budget can afford the loans you are considering.