04.30.2018 /

Personal loans or stress-reliever?

If you’re like many Americans, the holidays can be the most financially stressful time of year. Pushing your budget, and trying to figure out how to afford gifts, food and decor can be completely overwhelming.

So, if you’re forced to stretch your budget to make it through the holiday season, taking out a personal loan could be a smart alternative to using your high-interest rate credit card for purchases.

Personal loans are a form of credit. A type of unsecured loan, personal loans are based on your credit score and do not require you to post collateral. When you take out a personal loan, you’ll typically receive the amount borrowed in a lump sum with a set interest rate and repayment schedule. With a personal loan, you can benefit from low, fixed rates, and the knowledge that you know the exact date you’ll be debt free – a potentially huge holiday stress reducer!

When deciding between a Personal Loan and a Credit Card, keep in mind:

Personal Loans Credit Cards
  • Credit score determines your rate
  • Usually lower interest rates than credit cards
  • Repayment schedule means your debt will be repaid in equal monthly installments
  • Useful for long-term financing and larger expenses
  • Personal loans can be a great way to:
    • Pay off debts
    • Buy your loved ones what they’ve been wanting all year
    • Renovate your kitchen
    • Treat yourself to that tropical holiday vacation you so deserve
  • Credit score determines your rate
  • Usually higher interest rates than personal loans
  • Requires a minimum payment each month; your debt can roll on and on
  • Useful for short-term financing and immediate spending
  • Credit cards are great for:
    • Everyday expenses
    • Earning rewards on purchases over time

If you’re interested in learning more about your Personal Loan options, visit your local branch or give us a call: 1-888-317-9062.