How to Use a Personal Loan in 2021

After the year that was 2020, we don’t blame you for choosing to prioritize yourself in 2021. When setting a monthly budget based on your income, bills, and everything in between, it can be easy to put off bigger ticket items if you don’t have the funds on hand. 

At Discovery Federal Credit Union, we pride ourselves on offering our members the ability to purchase what they really want with the help of a personal loan. Low rates and flexible payment terms mean you’ll get the cash you need — and be able to pay back what you borrowed comfortably. 

Here are some ideas on how to use a personal loan in 2021.   

Consolidate Your Credit Card Debt

If you’re in possession of multiple credit cards that have accumulated a hefty amount of debt, then it can feel nearly impossible to focus on paying off your balances. It’s also pretty likely that high interest rates on those credit cards are making it difficult to achieve your dream of financial stability as quickly as possible. 

The idea of borrowing more when you are already trying to pay off credit card debt may seem irresponsible — isn’t the goal to get out of debt? But by paying off your credit card bills with a low-interest personal loan, the traditionally lower annual percentage rate (APR) will help you get out of debt faster and with better monthly rates. 

For example, a 2021 Report by WalletHub found that the average credit card rate for new accounts is a whopping 17.87%. If you have one or multiple credit cards that operate close to this average, then it’s no wonder why your monthly bills are starting to feel unmanageable. 

With a personal loan from Discovery FCU, you can consolidate your loans into a single debt obligation and achieve financial independence faster with rates as low as 6.99% APR. That’s a big difference!

Finance a Home Improvement Project

No matter which way you want to look at it, a home improvement project can be considered a smart investment. Perhaps you are hoping to sell your house in the future and want to increase your home’s market value. Or maybe, you just want to make your family’s space more comfortable by remodeling the basement or building a backyard pool for some summertime fun. 

Personal loans are ideal for small to midsize home projects due to the fact that they’re unsecured — meaning you don’t have to use your house as collateral. Since you can borrow up to $40,000 in personal loans from Discovery FCU, funds can be used for a wide range of projects. Whether your dream is to remodel your kitchen or simply replace a squeaky garage door, a personal loan can help you get there. 

Contribute to a Major Life Event

While many major life events like weddings or dream vacations were put on pause in 2020, there are still plenty of opportunities that you can consider funding with a personal loan. 

Personal loans are a great option for financing a child’s college education or even online classes to expand upon your expertise from home in 2021. They can also be used for any medical expenses that aren’t covered by your insurance provider. Out-of-network expenses such as dental and cosmetic procedures, fertility treatments, and mental health services can be extremely pricey, regardless of whether or not you have insurance. 

At Discovery Federal Credit Union, we understand how frustrating it is when health-related expenses don’t fit your current budget. That’s why our Lifestyle Personal Loans come with rates that are lower than our standard personal loans, and allow you to borrow up to $15,000 for one or multiple procedures. Don’t let the cost of a much-needed medical service stop you from finally making 2021 your year of health! 

How you choose to spend a personal loan is completely up to you. Discovery FCU is here for the journey to ensure that you’re on the right track to paying off what you borrow with competitive rates and terms that fit your needs.

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