- Personal loans can be used to consolidate your debts or to make big purchases
- Personal loans have a fixed monthly payment, typically over 36 or 60 months
- Personal loan interest rates start from 6.78% and average at 11.92%.
Personal Loans - Loans to consolidate debt
Credit cards are useful tools when you travel, or when you need to make a quick purchase. And, if you’re the type of consumer who pays off their credit card each month, then it’s probably okay to use one for most any type of purchase you have to make.
But, if you’re like most people, and you leave a balance on your card each month after a big purchase, then you know that your credit card bill can get away from you in a hurry. That’s why personal loans are becoming an increasingly popular tool – not only for debt consolidation, but also for making major purchases.
About Personal Loans
Personal loans have fixed monthly payments and must be paid-off in-full within a set amount of time (typically over 36 or 60 months). And, personal loans can be repaid early at any time without penalty. For that reason, they can help you maintain some financial discipline and plan for big purchases in a way that lets avoid long-term revolving debt.
Borrowers with good credit should do some research to find the best interest rates available on personal loans or credit cards. Don’t assume your bank or credit union has the best rates available.
Average credit card rates remain extremely high (16.77% according to the latest CreditCardIndex Survey), but consumers with good credit may be able to take advantage of a Prosper or Lending Club peer-to-peer loan, which offer a starting rate of 6.59%. Learn if you can take advantage of a lower rate and consolidate your debts into one low payment.