While credit cards get most of the attention, personal installment loans can also be a useful financial tool. Younger generations, including millennials, have warmed to these loans, and it is easy to imagine why. Reliable and convenient personal loans in Canada often make it possible for Canadian millennials to repay debt, make their homes safe and comfortable, as well as have their dream wedding.
Benefits of installment loans for millennials
Different lenders have their own lending policies, but in general, installment loans have some benefits that make them an attractive option to many millennials.
- Borrow up to $15,000: Millennials needing funds can borrow up to $15,000 at a time to use as needed.
- Repay in installments: Borrowers typically repay loans in fixed installments, making financial planning and monthly budgeting easier. Loan terms range from 6 months to 5 years, so borrowers can choose a timeline that works for their budget.
- Unsecured lending: With no collateral on the line, a borrower does not face the risk of losing their home, car, or other valuables.
How Canadian millennials can leverage installment loans
Facing major expenses as a millennial? Here are a few scenarios where personal loans can be a viable option.
- Weddings: Wedding expenses such as catering, venue, and photographer fees can add up quickly. Personal installment loans offer access to a lump sum that couples can use to pay for wedding costs. Plus, many couples repay part of their personal wedding loan with cash gifts received at the wedding.
- Home improvements or repairs: Buying a home is a huge moment for many millennials, but the cost of home repairs or upgrades can sour the moment. Installment loans can help homeowners cover up to $15,000 worth of renovations/repairs. With this type of personal loan, it is easy to spread the funds across one or more projects as needed. From roof repairs to replacing an appliance, a single loan can help cover multiple issues a new homeowner faces.
- Debt consolidation: Savvy millennials use personal loans to manage other forms of high-interest debt – such as credit card debt. Someone deep in credit card debt can secure a personal loan to pay off one or more outstanding card balances, then focus on making timely payments towards the loan. Debt consolidation helps address high-interest debt and works best when finding a personal loan with a relatively low-interest rate.
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The bottom line
Installment loans can be a great way for Canadian millennials to deal with big expenses. That said, it is essential to find a repayment timeline that works for you and make timely payments.
By taking out a personal installment loan, you can manage both planned and unplanned expenses as well as consolidate debt.