Personal loans come in all shapes and sizes and can be used for just about any purpose. These loans are flexible and can be tailored to suit any situation. Here are 10 things Aussie's can use personal loans for!

#1) Buying a car

When your application for a car loan has been declined, a personal loan is an option you should consider. The main reasons your application for a car loan will be unsuccessful are having bad credit, or not having a credit history at all. The irony of debt is that you need to have debt to get more debt! Applying for a personal loan with bad credit through a broker will help you find the best options for a long term loan.

Lenders are willing to extend loans to people with bad credit for slightly higher interest rates. Personal loans also allow you to buy your car from the dealership of your choice or even make a private purchase. Make sure the car you buy is in good condition and that you don't pay more for it than it's worth.

#2) Home improvements & renovations

Whether it's upgrading your bathroom fittings or putting in new kitchen cupboards, renovations can be expensive. Even if you cut down on labour costs by doing it yourself, you'll still need to account for the costs of raw materials and delivery. Credit cards may not be the best choice in this situation. They charge you very high interest rates.

Personal loans can come in handy for situations such as these. Once you've added up the costs you can apply for a loan that covers the full amount. This option is cheaper than applying for store credit, and if you make allowances for extra expenses, it can cover these too.

#3) Buying furniture, appliances or other high ticket items

Sometimes saving up for these high ticket items isn't possible. When your fridge finally packs up, is it worth fixing? Or should you invest in something new that you can rely on for years to come? Personal loans give you more options and can be approved in days, if not hours.

High ticket items like that home entertainment system you've been mooning over, the lounger that would fit perfectly in that corner, or the bedroom set you have always wanted can be paid for with a personal loan. It's a convenient way to finance upgrading your appliances and won't restrict you to stores that will extend credit to you.

#4) Starting your own small business

Personal loans are a great way to kick start your business. You can use it to pay for software, inventory, and marketing. Start-up costs can be daunting but with a personal loan, you can get your business off the ground. This kind of loan doesn't require a business plan or a 6-month wait to find out if your application has been approved.

By using your property or vehicles as collateral you can secure a personal loan with low interest rates and favourable repayment terms. Finding a family member or friend who will cosign the loan agreement will also help. Before using either of these options it's important to be sure you can afford to repay the loan.

#5) Consolidating out of control debt

Debt has become an unavoidable part of life. Sometimes it just builds up and gets out of control. This is when you use a personal loan to consolidate your debt. Find out what your total outstanding debt is, take a personal loan for that amount. Pay off all credit cards, store accounts, and any other outstanding bills.

By doing this you're going to improve your credit score while saving money. You pay interest rates and other fees on each of your accounts, credit cards and on late bills. Paying them all off in one shot means you'll only be paying those fees on one account. It's important to remember that some lenders will charge you an early repayment penalty.

#6) Weddings, birthdays, & special occasions

Celebrating milestones in life is important. You deserve the perfect wedding dress or that 21st birthday party that no one will ever forget. Personal loans can be used to finance these special occasions from flowers and venues to live bands and catering. You can choose a long or short-term loan to cover all the expenses including deposits.

Choosing a long-term loan to pay for these special events will give you more flexible terms and lower interest rates. Use this loan to pay for your parent's 50th wedding anniversary or your kid's graduation after party. And don't forget the photographer!

#7) Paying off overdue debts to family & friends

Borrowing money from friends and family sounds good in theory, but it can cause hard feelings if you can't pay them back quickly. In these situations, it's better to take out a personal loan and pay back the person you borrowed the money from. If it's a small amount, take a short term loan with the lowest interest rate you can manage.

All personal loans come with fees and the shorter the term of your loan the less you'll pay in fees. Outstanding debt between people who love each other can be toxic to the relationship. By clearing the debt, you can clear the air and smooth down the ruffled feathers.

#8) Paying for dream holidays & travel expenses

If you've been saving up for ages, but you still don't have enough to pay for your dream holiday a personal loan may be a solution. Whether you're on your way to Norway or Mexico this loan can be tailored to suit you. You can use it to cover the travel expenses or your spending money.

Budgeting for your trip is the best place to start. Visiting family in Sydney or going down to the Gold Coast for a week takes more than just financial planning. Use a budgeting app to work out the total cost of your holiday. Borrow what you need and go have a good time!

#9) Hobby & sports equipment

Some hobbies are more expensive than others. Buying a new boat or updating your home gym equipment is as easy as applying for a personal loan. With this loan, you can spoil yourself with the high-end gear that will help you ring more enjoyment out of your hobbies.

Always remember, only borrow what you need. The interest rate and fees are worked out as a percentage of the amount you borrow, so the less you borrow the lower your fees. Whether you're buying scubaing gear or a new saddle, make sure you get the best deal on your loan.

#10) Putting down a deposit on rental property

Moving out of your parent's house for the first time is exciting, but it's also expensive. The same applies to moving from one rental to another. You need to pay the deposit and the first months rent upfront. You can use a personal loan for this as well.

Before you make a move, make sure you'll be able to pay off this loan on top of your rent and utilities. Taking out a loan you can't afford to pay back will only get you into deeper trouble. Personal loans can be very helpful if managed properly.