 TITLE: What Is a Personal Loan? CONTENT: When Is a Personal Loan a Good Idea?\n------------------------------------\nWhile it's possible to use a personal loan for just about anything, that doesn't mean it's always wise to do so. In general, it's a good idea to use a personal loan when it can improve your financial situation or provide necessary funds. Examples include:\n*   **Debt consolidation**: If you have high interest credit card debt, you may be able to save money by paying it off with a lower interest personal loan. Even if you don't necessarily save money on interest, a personal loan can provide a structured repayment term, which can help if you're struggling to stay motivated in paying off your debt.\n*   **Home renovations**: If you want to make some improvements to your home, a personal loan may be a better choice than a home equity loan or line of credit because it doesn't come with the threat of losing your home if you default.\n*   **Emergency expenses**: In an ideal world, you'd have enough money set aside for emergencies. But life isn't always ideal, and if you lose your job, your car breaks down or a major home appliance needs to be repaired or replaced, a personal loan can provide some peace of mind at a stressful time.\n*   **Personal events**: Weddings, divorce and funerals can be expensive, and it's not always possible to save up for such a major life event. In these instances, a personal loan can provide much-needed funds at the right time.\nWhile it's possible to use a personal loan for things like vacations and expensive consumer goods, it's best to save up until you can pay for these expenses with cash (or charge them on a credit card to get the points and then pay them off immediately). END