The United States is a credit card nation. $10,679 is the average credit card balance carried by Americans. The average undergraduate college student has a credit card balance of $2,200. And, unfortunately, interest rates on credit cards are second only to those of payday cash loans.
In many cases, the only way for people to pay down their debt is to obtain a personal loan and use it towards debt consolidation.
According to the American Bankers Association, 22.1% of personal loans are made up from non-mortgage loans.
Why are personal loans becoming increasingly more popular?
• Personal loans carry lower interest rates than most credit cards.
• Enjoy greater flexibility with unsecured personal loans.
• Personal loans are usually unsecured, so borrowers’ assets aren’t at risk.
• Personal loans may also be secured--depending on the borrower’s assets and credit history--making them more widely accessible.
• Personal loans have fixed interest rates
• Debt consolidations using personal loans make it easier to stay organized because there is only one bill to pay, and it’s due on the same day every month.
You can get personal loans up to $100,000. The amount you borrow will depend on your income, debt to income ratio, FICO credit score and your needs.
