This article is sponsored by Discover Personal Loans; nevertheless, the views presented are entirely my own. In the words of NerdWallet, the total credit card debt owed by Americans reached an astounding $764 billion or an average of $16,424 per household as of January 2017. If you are part of this statistic, consider exploring personal loans.
Personal loans can serve as an additional resource within your financial toolkit, providing funds within a few days – a timeline which I, among many others, find impressively swift. People routinely utilize personal loans to manage various unanticipated expenses; some examples include consolidating high-interest debts, financing adoption procedures, affording necessary home repairs, and addressing unexpected medical bills.
Additional appeal lies in the simple application process for smaller personal loans; certain lenders even allow applications to be submitted online from the comfort of your home. Before applying, though, familiarize yourself with the details of personal loans and how they differ from other borrowing instruments.
Remember that the perks of a personal loan extend beyond the speed of receiving funds. These perks can vary by lender, so let’s examine what a typical personal loan entails:
First, there is a fixed term, or a set period within which you agree to pay off the loan. These loan terms typically span from 36 to 84 months and necessitate consistent, fixed monthly payments until the loan is settled. According to MagnifyMoney, contrasting loans can take up to 20-30 years to repay, incurring notable interest over this duration.
Second, fixed interest rates ensure the monthly payment and interest rate remain constant. This distinguishes personal loans from certain high-interest financial arrangements (e.g., store credit cards) that increase rates under circumstances such as late payments or accumulated debt.
Personal loans can also consolidate disparate high-interest debts into a single, manageable monthly payment, generally at a lower-fixed interest rate.
However, before hastily applying, it’s advisable to calculate how much you need to borrow, identify your current interest rates, and determine the monthly payment you can reasonably afford. Discover Personal Loans offers flexibility in setting loan amounts and repayment terms you’re comfortable with.
According to Credit Sesame, always analyse your financial situation and even check your credit score prior to applying. Maintaining a good financial track record improves your chances of approval, and if your credit score seems inaccurately calculated, you can dispute it.
Finally, while your personal loan’s interest rate is significant, consider the overall loan costs. Be aware that certain lenders might impose origination, closing, and early repayment fees. Many lenders offer digital tools for previewing your interest rate before committing to a loan. Discover Personal Loans exclusively allows you to check your rate without harming your credit score.
Important questions you should ask your prospective lender include whether they calculate interest in advance, impose origination fees, and charge pre-payment penalties. In general, personal loans can fund various needs like funding weddings or vacations, large purchases, car repairs, health bills, taxes and much more. Therefore, whether you aim to consolidate debt or need additional funds for major events or unforeseen expenses, I recommend giving Discover Personal Loans a try.
