Personal loans can be used for a variety of big or unexpected expenses, often at a lower cost than alternative consumer options, like credit cards. Whether you need a personal loan to fix your car, cover sudden medical bills, or pay for a home renovation project, a personal loan product can give you access to the funds you need with the flexibility to pay it back over time.
Between travel, meals, experiences, and gifts for loved ones, it’s no surprise that consumer spending often peaks around the holiday season. In recent years, though, this spending has increased to now-record levels, leaving many families facing high balances come January.
According to a recent study from Experian, the average credit card account has a balance of $5,221. Based on data from the Federal Reserve, though, the average credit card also has an interest rate well into the double digits, which can cost cardholders thousands of extra dollars over the course of their debt repayment.
There are many reasons for taking out a personal loan, whether you’re looking to consolidate credit card balances, refinance student loans, or make a large purchase. Personal loans are installment loans, meaning that you’ll receive your money in one lump sum, which you’ll then repay monthly over a specific period of time.
For many of us, debt is a necessary financial tool that we will likely utilize in our adult lives. We often rely on various forms of debt to pay for our education, purchase a family home or car, and even cover unexpected expenses such as medical bills or home repairs. In fact, among American households with debt, the average family currently has more than $155,622 in outstanding balances.
Debt. For many of us, it’s an unavoidable part of life, helping us reach certain financial goals such as buying a home or going to college. As necessary as debt might be, it can sometimes feel like… well, another four-letter word to be avoided.
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