Things happen which may cause you to need a quick cash infusion. If you are short on time and money a personal loan may be a great way to help prevent a total derailment of your finances.
The decision making process of getting a personal loan, whether secured or unsecured, is fairly quick compared to the rest of the loan industry. Unsecured loans (those not requiring collateral) can be found online and approval can just take minutes. For those seeking to use their home as collateral, a secure loan can be obtained in a couple of hours.
When it comes to some loans the amounts are always huge. Mortgages can run into the millions, car loans in the tens of thousands range but personal loans can be granted in smaller amounts. Depending on your needs individuals can secure personal loans from as little as $1000 to the industry average high maximum of $15,000. The value amount depends on a person’s credit history and whether or not they are seeking a secured or unsecured loan.
Personal loans are also excellent tools for debt consolidation. As opposed to having multiple debts on a variety of credit or store charge cards with a variety of APR rates and payment deadlines, a personal loan can make the process easier to manage. By taking out a personal loan, all the debt can be paid off and that one debt can be easily managed. Many times, a personal loan rate can be lower than a credit card interest rate, making the personal loan interest rate an advantage.
If someone chooses a secured personal loan to consolidate their debt, they also may be able to take advantage of a longer repayment schedule with more flexible terms and conditions than their existing debt holder.