While having savings behind us is the goal of most people, sometimes it’s just not practical at particular stages in our lives to attempt to build up the money you need. While some people frown at the idea of taking out a loan, the truth is the vast majority of us live with some form of debt – anything from a household mortgage to auto repayments.

These days there is a huge range of lending products on the market ranging from long-term loans to much shorter-term lending, often guaranteed against your home, car, or other similar high-value items. To learn more about these innovative, shorter-term loan products read this blog post from Fast Money Car Title Loans.

Times when you might be best taking out a loan

People take out loans for all sorts of reasons, ranging from store purchases to going on holiday. However, as a rule, the best uses for a loan are when you use the money constructively, usually for larger purchases. Here are just some of the times taking out a loan might make sense:

Taking out a loan to consolidate debts:

Recent studies have found that Americans hold nearly $1 trillion in credit card debt – debt that normally attracts a far higher rate of interest than can be achieved by other forms of borrowing. By consolidating your debt into one loan, you could save considerable money.

Borrowing to improve your home or make repairs:

While it’s possible to take out a home equity loan to make renovations, repairs or upgrade work on your home, it’s worth remembering that this kind of borrowing puts you at potential risk of losing your house if you fail to maintain payments. If you want to avoid possible problems later, you may well be better taking out a normal, no-ties loan instead.

Using a loan to buy a new car:

Rather like equity loans to renovate a home, it’s also possible to take out specific car loans. However, just like home equity borrowing potentially puts your home at risk, with an auto loan, the car is used as collateral to guarantee the lender of your ability to repay. If you’d rather not take the risk of possibly losing your car, you might be better considering lending without ties and conditions.

Taking finance to help with the costs of moving home:

Short-distance moves often end up relatively cheap but if you’re changing state or country, the costs can soon mount up trying to cover everything from packing expenses, hiring a removal company, and paying for transportation. Rather than trying to shoulder the costs and possibly stretching yourself, you might be better taking out a loan to help make the payments.

Borrowing to cover the costs of an emergency:

Life is unpredictable at the best of times and accidents can and do happen. If you or a loved one falls ill, you must get the treatment you need – you can’t put a price on health after all. In medical emergencies, you might consider taking out a loan if you find you’re being stretched. Other common emergencies that can crop up include falling behind on utility bill payments, funeral expenses, and unexpected car repairs.