We've all had money problems. Most often, when we needed something or really wanted something, but our budget was not ready for it.
Of course, we can often survive unfulfilled desires. Sometimes those desires are for something really necessary, like a broken refrigerator that needs to be replaced or an expensive car repair that you just can't work without.
And then we have several options for what to do. For example, you can borrow from friends, but there are nuances. Or you can take out a personal loan. But let's look at both options.
Why not borrow from friends?
At first glance, asking for help from loved ones is the most logical decision. They will definitely not require interest and monthly payments and are unlikely to set strict deadlines. But in life, not everything is as simple as we would like.
To begin with, your family or friends may not have the amount you need. Of course, it seems to you that you know about the solvency of your loved ones, but what seems to be true is not always true. Sometimes you can not only not receive money, but also put your loved one in an awkward position with your request.
In addition, often, debts between friends somehow spoil the relationship. Not all people are able to lend money and forget about it until the time comes to receive it back. Some just can't help but pay attention to what you buy and how you spend money until you pay them back. People do it not on purpose, not out of harm or bad character. It just happens.
So is it worth risking a warm relationship for this? If you answer "no", let's move on to a more reliable option.
A personal loan is a solution!
First, let's understand what a personal loan is. A personal loan is a type of long-term, often an unsecured loan that you can spend however you like. For example, when you take out an auto loan or mortgage, you can't spend the money on something else. With a personal loan, things are different. The bank will not ask you what you plan to spend the money on. And if they ask, no one will control where you really spend them.
In addition, personal loans are quite profitable. They have low-interest rates, long repayment periods (up to 64 months), and a wide range of amounts you can borrow, often from $1,000 to $50,000. In comparison, according to the Federal Reserve's latest data, the average personal loan interest rate is 10.16%, and the credit card rate is 18.43%.
Let's not forget that you can regulate your monthly payments. The longer the repayment term you choose, the less you will have to pay each month. However, keep in mind that the shorter the loan repayment term, the less interest you will pay. Be that as it may, the main thing is to focus on your budget and not remain after the monthly payment in such a position that you will want to take another loan.
Your credit score is your only problem with a personal loan. As with most loans, lenders pay a lot of attention to your credit history. The better it is, the lower interest rates you can count on, and vice versa.
If you need money for repairs, vacations, new appliances, or medical bills, it is better to take a personal loan. It's simple, affordable, and won't leave you penniless. Unfortunately, relationships with close people do not always pass the test of money. And that's what lenders are for.