Planning your next big step with a personal loan

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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We all have dreams and goals that we would like to accomplish, but sometimes our finances fall a little short. This shouldn’t be the reason why you don’t complete them. A personal loan can help you with your budget in more than one ways. Whether you are completing a home improvement project, making a major purchase, or covering an old bill that is incurring interest, it comes in handy. Here are four reasons why a personal loan can bring you one step to achieving your goals.

Home improvements

1 in 6 Australians are not happy with their homes, but cannot afford to undertake any improvement projects. Your home should be the spot where you relax, rather than being harassed by the terrible sight of its aging structure. According to statistics released by Roy Morgan, there’s an estimated 93,000 Aussies who have active persona loans to help renovate their homes. The perks of this is that you can improve your homes aesthetic appeal to the level that you want. Loans usually range from $2,000 to $20,000 and vary from lender to lender. A personal loan can help you increase your home’s value by fixing things that could decrease its value. You could speak to an accredited personal loan provider to find a deal that is suitable for your home renovation needs.

Pay off your education fees

Knowledge is power when it comes to unlocking doors that can help you achieve the future that you desire. However, with student loans already contributing 43% to Australia’s public debt education is proving to become more expensive. According to a report by The Australian fees will continue to rise more than fivefold in 2025-26 with an estimated cost of $185t.2 billion.

The benefits of a educational personal loan can help ease the financial stress, so you can focus on securing that degree. Depending on which financial lender you approach you can get benefits such as discounted interest rates, a no loan top up fee, and a flexibility features that can help you better manage your loan such as the no required repayments for the first year with the graduate loans. Always make sure that you read the fine print of these loans, and weigh whether the drawbacks are worth taking a personal loan out.

Use a personal loan to cover holiday expenses

Holidays can be costly. Whether you are planning a much need getaway to a foreign destination, or you need to pay off costs from previous holiday spending a personal loan can sort you out. It can help you consolidate outstanding credit card balances at lower interest rates. The catch is to shop for the best rate that will benefit your situation.

Making big appliance purchases

Buying a house can be one of the few biggest purchases you will make. Turning a house into a home can be even more pricey. A personal loan can help you purchase major appliances that your budget may not be able to cover such as a spacious refrigerator, a high definition LCD tv, or buying furniture. When getting a personal loan, the main question you need to ask is if you really need one to consolidate your budget, and if you will be able to pay it off. You have the choice to shop around and always find an offer that better suits your needs.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for personal loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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