1 / 5

The 4 Reasons People take out Personal Loans

People take out loans today to invest in mutual funds and the stock market. Personal loans for investment are a great way of growing your money and still having access to your assets. https://blusynergy.in/personal-loan-for-investment/

Daniel199
Download Presentation

The 4 Reasons People take out Personal Loans

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The 4 Reasons People take out Personal Loans According to a study, personal loans are the fastest-growing debt category. Mortgages still make up 71.7 percent of consumer debt, but personal loans were taken out by Americans in 2019 at a higher rate than auto loans and mortgages. These are just a few of the many ways people can use personal loans.

  2. 1. Repaying debt People take out personal loans most often because they want to consolidate their debt. An average American has four credit cards. It can be hard to keep track of all the bills and APRs when you have multiple credit cards. Personal loans can help you consolidate your monthly payments into one bill. You can also save interest with personal loans. Refinance of high-interest credit cards can help you save money and have a lower APR. A balance transfer card is a great way to get rid of debt if you have good credit.

  3. 2. For Investment People take out loans today to invest in mutual funds and the stock market. Personal loans for investment are a great way of growing your money and still having access to your assets. A personal loan for investment can allow you to access a loan with a high interest rate that will help you invest in many different assets. It is risky to take out a loan and invest this amount. Stocks do not guarantee a return. It is very difficult to repay the loan amount if your investment goes bust. You will have to pay high interest.

  4. 3. Renovations to your home We found that 17% of respondents used their loans to make home improvements. A personal loan allows you to finance home improvements with an installment plan, whether you are looking for a complete gut job or just a simple upgrade. For many Americans, spending a few hundred dollars per month is more feasible than spending $20,000 all at once to buy a new kitchen. Keep in mind, however, that personal loans are subject to interest and will ultimately cost more. It may be cheaper to plan ahead than to take on more debt if you aren't in a hurry to renovate.

  5. 4. Education Federal student loans are the best option to obtain a flexible, low-interest loan to pay for college. If you are just looking to learn new skills or take online courses to advance your career, however, a personal loan may be the best option to help pay for the education that you need to obtain a better job or get promoted. Be sure to look for free alternatives before you sign up. For example, ask your employer if they offer professional development. If you are looking for a career change, find out what salary range you can earn after you have completed your education. It is important to determine if you can afford the monthly loan payments and your new, hopefully, better salary.

More Related