Tag Archives: personal loans

Fighting Debt With Debt: America’s Penchant for Personal Loans | The Simple Dollar

Taking out a personal loan to consolidate or pay off mounting debts is not exactly a new development.

However, according to a recent Lending Tree study, it has grown to be the overwhelming reason Americans access personal loans these days. In fact, the study revealed that managing existing debt represented 61% of personal loan requests in 2018. The next closest category was home repairs, at a meager 7.7%. That’s a significant gap.

What’s more, consumers seeking a personal loan to pay off debt requested the highest origination amounts: $14,107 on average for credit card refinancing, and $12,670 for debt consolidation.

But is this growing penchant for using personal loans to tackle debt the wisest approach? Is it smart to fight debt with more debt? Here’s what the experts had to say.

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Americans are splurging on personal loans thanks to fintech startups | Quartz


Ten years on from the credit crisis, Americans are again piling on debtin all its varieties, from credit cards to student loans to mortgages. These days, personal loans—a category turbocharged by fintech upstarts—are growing especially quickly. With an increasing number of shaky borrowers taking on this debt, the risks are growing for lenders during the next economic downturn.

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Personal Loans Make a Comeback | AllBusiness.com

At a time when banks remain reluctant to approve business loans, many are issuing more and more unsecured personal loans. SmartMoney reports that SunTrust Bank handed out 23 percent more personal loans through September 2011 than it did in the same period a year ago, while TD Bank issued 5 percent more personal loans. Wells Fargo and Capital One also say their personal loans are up.

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Need a Loan? Ask the Boss | WSJ.com



Every year, business owner Jim Fab lends his 25 employees as much as $4,000 interest-free for personal expenses they can’t afford up front, ranging from down payments on homes and cars to funeral and legal fees. Most pay him back – eventually.

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