When you don’t have enough money in your checking account to cover an unexpected expense, taking out a personal loan from a trusted bank might be an attractive option. These borrowing agreements function similarly to other types of debt, usually by allowing you to pay off the balance over time in addition to interest. However, unlike auto and mortgage loans, this option can be applied to many different types of expenses—not just one specific purchase.

5 Expenses You Can Cover With a Personal Loan

1. Medical Bills

If you or someone in your family has a health issue, you may not have enough to cover the cost of care. A personal loan, however, can provide quick funds to help you pay for doctor’s visits, prescriptions, surgeries, and other treatments.

2. Car Repairs

Car problems can make commuting difficult and unsafe, and in some cases, prevent you from getting to work and earning income. Rather than getting stuck, you can use a personal loan to pay for auto repairs and get back on the road.

3. Tax Debt

Although it’s possible to estimate your tax liability to a certain degree, many find that they owe more than they expected when they file their returns. If you can’t pay off the balance by Tax Day, you may incur fees and other penalties. A personal loan can provide the financing you need to pay the IRS at a much lower rate than what you could expect from a consumer credit card.

4. Emergency Travel

As an expense that isn’t often budgeted for, last-minute hotel room reservations and plane tickets may be too much for your checking account. If you need to travel unexpectedly, taking out a personal loan can help you get where you need to go without having to worry about the expenses incurred along the way.

5. Refinancing

If you have one or more credit cards that carry high-interest rates, you could be paying more than necessary to satisfy the debt. In these cases, it can save you money to get a personal loan and use the funds to pay off your credit card balances. While you’ll still have an amount to pay off, the personal loan may offer a considerably lower interest rate and allow you to save money while you’re in repayment.

When you want to explore your financial options with confidence, consult with the professionals at Magnolia Bank. With locations in Elizabethtown, Hodgenville, and Magnolia, KY, this local bank offers accessible services to account holders of all backgrounds. Whether you need to open a checking account or take out a personal loan, this friendly team will introduce you to simple options designed to fit your budget. Visit this establishment online or call (270) 358-3183 to learn more about their personal banking and lending solutions.