We borrow money because we don’t all have the well-stocked bank accounts of celebrities!
As we know, there’s always something to spend money on: renovations, a new vehicle, birthday gifts, children’s wardrobe, etc. Unfortunately, we do not always have the funds needed when an expense, planned or unexpected, large or not, comes up.
In these most trying times, it may be interesting to turn to financial institutions or credit intermediaries. They will give you the financial help you need, when you need it. In return, you will have to repay the amount borrowed, as well as interest and fees, in several installments over a fixed period of time.
Reasons to borrow
There are more than a lot of reasons to borrow. Here are ten of the most common ones:
- Buying a property:
Buying a home almost always means a mortgage since few have such a large sum. In fact, according to the Canadian Bankers Association, 917,680 Quebeckers have a mortgage in 2019 (https://cba.ca/mortgages-in-arrears?l=fr).
- Buying a vehicle:
The same reasoning applies to the purchase of a vehicle: it is infrequent to have the necessary amount to make the purchase of a new vehicle. A car loan is, therefore, the solution.
- Home renovations:
Improving one’s living environment is usually as exciting as it is exhausting. It is often through a personal loan or mortgage loan that you will be able to finance your renovations.
- Debt consolidation:
When debts are incurred in several places, it is easy to become confused: different creditors, multiple maturities, different payment frequency. To simplify your life and avoid defaults, it may be worthwhile to borrow enough money to repay all your loans. You will then have only one creditor, a unique monthly payment, a single maturity date.
- Marriage:
Your love is priceless, you say? $20, 000. This is the average price of marriages in Quebec according to La Presse’s file on marriages (https://www.lapresse.ca/vivre/dossiers/le-mariage/201201/31/01-4491166-un-oui-je-le-veux-pour-toutes-les-bourses.php). Even if the money received from the guests covers part of the costs, you will usually have to pay the amounts upfront, which is why a loan can be interesting.
- Tuition:
The famous student loans and scholarships program is the most well-known form of borrowing when it comes to financing one’s tuition. For some students, however, these are inaccessible for several reasons. For tuition fees, they will turn to personal loans or student lines of credit instead.
- Unanticipated expenses:
Has your water heater just spilled into your basement and you now need to replace it? Is your car in urgent need of repairs? Do you have a fine to pay? When juggling a tight budget, such unforeseen events can be catastrophic, jeopardizing our ability to make ends meet. A loan allows us to cope without affecting the payments of your living expenses.
- RRSP contributions:
From a tax perspective, it can sometimes be worth borrowing to contribute to an RRSP before the end of the year. In some case, the amount saved in taxes may be greater than the interest charged on the loan.
- Medical expenses:
Not all medical expenses are covered by the government and insurance is not available to everyone. Because you should not cut corners when speaking of your health, taking out a personal loan would allow you to get the care you need and then choose a repayment structure that works with your budget.
- Vacation:
Are you tired? You can’t imagine one more day at work? Unfortunately, you still need some savings for your dream vacation… A personal loan can be a good way to finance your vacation by allowing you to realize your dreams without waiting for sufficient funding.
Second and third chance at credit
While for many, getting a loan is a relatively simple operation, it is not for everyone. If hard times have affected your financial health, financial institutions may turn their backs on you. Second and third chance at credit can then be an attractive alternative.
If you’re concerned about applying for this kind of loan, read the following: a responsibly contracted second or third chance loan can really help. On the one hand, although there are crooks in all areas, there are also several honest companies who are willing to support you in the restoring of your finances. Credit2Go is one of them and could help you through your journey.
Secnd chance
On the other hand, second chance loans give you the freedom to use borrowed money the way you want, which is not the case with a mortgage or car loan given by a financial institution. The requested funds will be quickly deposited directly into your bank account, allowing you to use them according to your needs.
In short, a second or third chance loan can simplify your life by allowing you to get through a slow period or just to spoil yourself a little!