Click me
Transcribed

6 Things You Need To Know About Personal Loans

NEED TO KNOW, LOANS YOU THINGS PERSONAL A personal loan is a loan that can be designated for any number of personal expenses. 1 There are two types of personal loans available: SECURED UNSECURED PERSONAL LOANS PERSONAL LOANS A secured personal loan is one that uses collateral, such as a house or car, to back the loan. To be eligible for unsecured personal loans, which are by far much more common, you don't need to put up any kind of collateral. You can apply for a personal loan at any bank, building agency, or other official lender. 2 The amount of money you can borrow can vary The amount of money you can borrow with a personal loan can vary by lending institution and your personal credit rating. Personal loan amounts normally range between $500 and $10,000. If you want to borrow a larger sum, lending agencies will likely require $500-$10,000 you to change to a secured personal loan and use your home, car, or other assets as collateral. Personal loans have fixed terms You know when the debt is paid off, and it is almost always less than 5 years. (Pay the minimum due on your credit card, and you could still be paying 30 years from now). LESS THAN 5 YEARS You have a set period of time to repay your personal loan AVERAGE LOAN PERIODS IN MONTHS: Loan periods are stated in months, e.g. 12, 24, 36, 48, and 60. Longer repayment periods lower your monthly loan repayment, but they also mean 12 24 you pay more in interest than if you had a shorter repayment period. Your interest rate may also be tied to your repayment period. For example, you may have a lower interest rate with shorter 36 48 repayment periods. There may be a penalty for paying your loan off early. 5 Personal loans have fixed interest rates 60 Credit cards will increase the interest rate on your existing balance if you become 60 days past due. And they can increase your interest rate on future purchases at any time. DAYS PAST DUE CAN INCREASE THE INTEREST RATE ON YOUR EXISTING BALANCE If a secured loan cannot be obtained, a personal 6. loan can be usually be used to consolidate debt The average U.S. household with debt carries $15,355 in credit card debt and $129,579 in total debt. Luckily, personal loans can help people consolidate their debt. If a secured loan cannot be obtained, a personal loan can be usually be used to consolidate debt at a lower interest rate than credit cards generally carry. AVERAGE HOUSEHOLD CREDIT CARD DEBT: AVERAGE HOUSEHOLD TOTAL DEBT: $15,355 $129,579 SOURCES: moneyallocator.com/articles/personal_loan.asp magnifymoney.com/blog/personal-loans/4-traps-to-avoid-when-getting-a-personal-loan credit.about.com/od/avoidingdebt/a/basics-of-personal-loans.htm nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household BROUGHT TO YOU BY: ** CASH www.starstarcash.com .............. ...... 60

6 Things You Need To Know About Personal Loans

shared by StarStarCash on Jan 14
30 views
0 shares
0 comments
Some people avoid personal loans because they think they’re too complex and hard to understand. The truth is, you can learn everything you need to know about personal loans in just a few minutes, an...

Category

Economy
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size