Personal loans can be a handy solution when life throws unexpected expenses your way or when you’re planning something big. Whether it’s tackling financial stress or chasing personal goals, many Australians use personal loans to help make things happen.

Curious about how Australians are using personal loans? Let’s take a look at the top reasons Aussies are borrowing—and how it might help you too.

Debt Consolidation:

Got multiple high-interest debts weighing you down? One of the main reasons people go for personal loans is to combine debts into a single, manageable loan. It helps simplify things and can even reduce the overall interest you’re paying.

Home Improvement:

From refreshing your living room to adding an extra bedroom, personal loans are often used for home improvement projects. They give homeowners the flexibility to upgrade their space without the long-term commitment of a home loan top-up.

Travel and Vacations:

Many Australians use personal loans to finance their dream vacations. Whether it’s a coastal road trip or that overseas adventure you’ve always wanted, a personal loan can help turn your travel dreams into reality. It covers things like flights, accommodation, and activities, so you can focus on enjoying the experience.

Buying a car

When it comes to buying a car, personal loans are a popular choice. Whether opting for a new or used vehicle, a personal loan can provide the necessary funds to make the purchase. It offers flexibility in terms of repayment and can be a convenient alternative to dealership financing.

Paying for education

Education is an investment, but it’s not always easy to pay for upfront. Personal loans can cover tuition fees, course materials, and other study-related expenses, whether it’s for a university degree or professional training.

Covering medical bills

Medical expenses can hit unexpectedly, whether it’s for urgent treatment or elective procedures. Personal loans help ease the financial burden, giving you access to the care you need without delay.

Planning a wedding

Weddings are joyous occasions but can also be costly. Personal loans can help cover wedding expenses, including venue rental, catering, photography, and other associated costs. It allows couples to create their dream wedding without the stress of upfront costs.

Starting or growing a business

Got a business idea but need some extra cash to get started? Many small business owners use personal loans to kick off a new venture or invest in equipment and growth.

Dealing with unexpected costs

Life is full of surprises, and personal loans can be a valuable resource to cover unexpected expenses. Whether it's a major car repair, home repairs, or emergency medical bills, a personal loan can provide the funds needed to handle unforeseen circumstances.

Celebrating life’s milestones

Personal loans are commonly used to finance special events and celebrations like birthdays, anniversaries, and milestone achievements. They allow individuals to host memorable gatherings or treat loved ones to unforgettable experiences. Personal loans can help you plan those special moments without straining your day-to-day finances.

Find Your Best Loan with Lendela

Whatever your reason for borrowing, personal loans are all about flexibility. At Lendela, we make it simple by matching you with personalised loan offers from multiple lenders in one go. Our unique reverse auction model means no more running around comparing false advertised rates—just a simple process designed to find what works best for you.

Key Takeaways

  • Debt Consolidation: Many Australians opt for personal loans to consolidate multiple debts into a single loan, streamlining their financial obligations and potentially reducing overall interest payments.
  • Home Improvement: Personal loans offer homeowners the means to fund home renovation projects.
  • Travel and Vacations: Personal loans enable individuals and families to finance their dream vacations, covering expenses such as travel, accommodation, and activities.
  • Vehicle Purchases: Australians frequently use personal loans to purchase vehicles, offering an alternative to dealership financing with repayment flexibility.
  • Education and Training: Personal loans are commonly utilized to support educational pursuits, including university degrees and vocational training, covering tuition fees and related expenses.
  • Medical Expenses: Personal loans can provide crucial financial support during unexpected medical situations, helping cover medical bills, surgeries, and treatments.
  • Wedding Expenses: Couples can use personal loans to fund wedding ceremonies, covering various costs like venue, catering, and photography.
  • Small Business Ventures: Entrepreneurs turn to personal loans for capital to start or expand small businesses, purchasing equipment and financing operational needs.
  • Unexpected Expenses: Personal loans act as a safety net for unforeseen circumstances, helping individuals manage unexpected costs such as car repairs or emergency medical bills.
  • Special Events and Celebrations: Australians use personal loans to finance special occasions.