Is it wise to use a personal loan to pay your typical monthly bills? The best practice is not to do so, but in these trying economic times, this may be your only choice. If you are faced with this decision, then you have probably had a drastic change in your income level, or you have not planned accordingly with the bills that you have.

If your household income has been affected by a layoff or a cut in hours then this may have been an unforeseeable misfortune and you have not had the proper time to adjust your lifestyle in accordance with the lower income level. The question you must answer is how you are going to be able to pay for the added monthly bill of a loan payment. Taking out a personal loan may get you through a few months of bills, but you must act in accordance with the fact that you can no longer afford what you have been used to. The personal loan will buy you some time to help you get through these difficult times, but cutting back on your monthly expenses is the only way you will effectively be able to overcome this problem

Most people feel that they will be able to use a loan to get them out of this jam, but finding a new job or supplemental income is taking people longer than they have imagined. If you do not adjust your lifestyle to accommodate your lower income, you will find yourself in much more financial trouble after the loan has been spent. You really have to take a hard look at what is absolutely necessary and what could be considered a luxury. Downgrading your vehicle to something more affordable is a good place to start.

Now, if you are not affected by a job loss and still need a loan to help with bills, then you are living beyond your means. Sometimes emergency things come up in life and you have to spend money on things that you were ready for. This is totally understandable and a personal loan can be a big help if this is your situation, but if you are just letting your monthly expenses get away from you, then it is time to take a hard look at what you are spending your money on. No more nightly dinners out and shopping sprees that break the bank. You have to be wise and spend the money that you have, not the money you can borrow.