Cons of Personal Loans
A personal loan can go a long way in turning your financial
situation around. Personal loans can help you put money down
on your first car or home, or they can help you send your
child to college. Loans can make medical
bills disappear, and some can even be used to simply hold
you over until you receive your next paycheck.
While a personal loan might seem to be the answer to all
your prayers, it does not always work out that way. Loans
have to be paid back, of course, and the majority of them
will cost you quite a lot of money in the long run. Interest
rates, even low ones, can make it difficult for you to even
make headway on the payment of a loan, so within a few years
you owe thousands of dollars more than you initially borrowed.
The Pros and Cons of Fixed Rate Loans
When receiving a personal loan, you will probably be faced
with several options. Some loans will have adjustable
rates, while others will have fixed rates. Adjustable
rates are generally lower in the beginning than fixed rates.
This means that you can save on monthly payments when you
first start paying off the loan. However, the adjustable rate
will eventually shift and your payments can skyrocket.
Fixed rate loans can
offer you more security than their adjustable counterparts.
Your monthly payments will generally remain the same throughout
the duration of the loan, so you will know exactly how much
money you need to set aside for them. Regardless of the rate,
personal loans can take decades to pay off, so you need to
be sure that you have the ability to take on the long-term
debt, because defaulting on a loan can cause problems for
the rest of your life.
Small Personal Loans up to $1,500
Compare Small Personal Loans up to $10,000
Homeowner Loans over $50,000
How can I get a personal loan with no collateral?