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 | Credit score determines your rate |
| Usually lower interest rates than credit cards | Usually higher interest rates than personal loans |
| Repayment schedule means your debt will be repaid in equal monthly installments | Requires a minimum payment each month; your debt can roll on and on |
| Useful for long-term financing and larger expenses | Useful for short-term financing and immediate spending |
Personal loans can be a great way to:
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Credit cards are great for:
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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.
The information mentioned in this article is for informational purposes only, is intended to provide general guidance and does not constitute legal or tax advice. Each person’s situation is unique and may materially differ from the information provided herein. You should seek the advice of a financial professional, tax consultant and/or legal counsel to address your specific needs before any financial or other commitments regarding the issues related to your situation are made. Popular Bank does not make any representations or warranties as to the content contained herein and disclaims any and all liability resulting from any use of or reliance on such content.