Welcome to 2017, where the total household debts of the Americans have surpassed the 2008 peak. Announced by the Federal Reserve Bank of New York, the total debt has reached $12.7 trillion in the first quarter of 2017.
This encompasses all kinds of debts, from credit cards, mortgage, and student debt, to personal debts. Debt is as American as apple pie. The US household debt rose by 1.2 percent for the fourth quarter of 2016.
While a personal loan is still borrowed money, it can be used to pay off all other debts. Yes, you can use a personal loan as you please – for a vacation, for a new set of golf clubs, for a fancy ring. But if you want to make good use of a personal loan, use it to consolidate your debts and bills.
This loan product provides financial flexibility. Life can take you somewhere unexpected, something as flexible as a personal loan can help you cover unexpected expenses. What you need is a good credit score and a solid income source to be able to qualify.
Build or Repair Your Credit
If you are struggling to build your credit, this loan can give you a hand. Say, you have consolidated your payables into one personal loan. The one most important trick is to be mindful is to always always keep current on your payments ( i cannot stress on that more). If you are diligent in paying your dues, you will soon reap the rewards of a better credit score.
No Personal Loan is Created Alike
What this means is that lenders may have different interest rates, loan terms, and qualifying requirements.
It is essential to go shopping for lenders and rates. By shopping, you can also check if lenders will charge you some upfront fees. This will help you find a good rate, making your payments more affordable.
The possibilities brought by a personal loan is endless. But with such freedom comes a huge responsibility to make use of the money wisely.