Lisa Cahill, Credit Cards Moderator
The best use of a personal loan is for an expense that is essential, such as paying off unexpected medical bills or fixing a car. Another good use for a personal loan is an investment that will pay off in the future, such as home improvements that will raise the value of your house. You also might want to use a personal loan for debt consolidation, if you can get a significantly better deal than what you're currently paying.
Some things that aren't the best use of personal loans are non-essential purchases that won't provide future value, along with vacations, weddings and other events that put you in debt for far longer than they last. That said, you can use a personal loan for almost anything, so it's up to you whether an expense is worth borrowing money.
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