Tired of pinching pennies?
A personal loan may be the answer to your money woes!
Getting a student loan can be difficult. Federal aid doesn’t always cover all of the costs, and there are sometimes additional costs that arise during the academic year that were unexpected. This is where a personal loan can come in handy.
Personal loans are unsecured loans with a fixed payment schedule and payment amount. You can use a personal loan to consolidate your debt, pay off a credit card or just put money in the bank. Or, if you’re a student, you can use it to buy the additional books or supplies you need, fix your car, or pay for unexpected health expenses.
You can also use a personal loan after you have graduated. A college education can come with a fairly hefty price tag, and students often accumulate education bills that have to be paid after graduation. If you have more than one student loan, the burden of making multiple payments with multiple interest rates can be cumbersome.
Recent graduates can consolidate their student loans into one monthly payment by obtaining a personal loan. Having just one payment with one set interest rate will save you money in the long run, and having only one payment to make will be much less of a hassle.
There are several types of personal loans that can be used for student loan consolidation. Some can help you cut your monthly payout in half, and all can help you improve your credit score.
It may help if you understand personal loans a bit better. The term personal loan basically refers to two types of loans: unsecured and secured. Secured requires collateral, while unsecured does not. Unsecured loans often come with a high interest rate, while secured loans often have the lower rate. With either loan, there is no requirement on how you use the money – it can be used however you need. This makes them ideal to help students stretch their college tuition dollars.
But be aware that no matter the route you take when it comes to personal loans, if you default, you’ve got trouble. As a student, if you get a secured loan, it will likely be because you have a co-signer. Default, and you’ve got problems with that person.
With an unsecured loan, you’ll have even bigger problems. Lenders can demand payment and sue the borrower if the unsecured personal loan goes into default. It will be in your best interest to pay either type of loan off according to terms.
Guest post provided by America One Unsecured. America One has been helping consumers with all of their financial needs for years. Whether it be a personal loan or a small business loan you are seeking – they can help you find the financing you need.