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Interest Rates for Personal Loans Have Fallen. Is Now a Good Time to Borrow? – The Motley Fool

Image source: Getty Images

If you’ve been considering a personal loan, now might be the t…….

Image source: Getty Images

If you’ve been considering a personal loan, now might be the time to see what lenders have to offer.

Key points

  • This year is the first time personal loan interest rates have dropped below 9% since the Fed began keeping track 50 years ago. 
  • Used wisely, a personal loan can help you get out of debt faster and save money.
  • The best personal loans are offered to those with the highest credit scores. 

Personal loan rates dropped to 8.73% during the second quarter of 2022 (April through June). That represents the first time personal loan rates have landed below 9% since the Federal Reserve began gathering data 50 years ago. Now that interest rates are relatively low, is it the right time for you to borrow money? Here, we examine what lower rates can mean for you.

Is now the time for you to borrow?

Whether or not now is a good time to borrow depends on what you plan to do with the money. One of the unique things about personal loans is that most can be used in any way you wish. Want to run away to a tropical island for a while, buy a classic car, or remodel your house? A personal loan can make it possible.

With interest rates setting record lows, now may be the right time to borrow a personal loan to meet your financial goals. Here’s what you need to know about personal loan rates today.

If any of these situations sound familiar, it can make sense to apply for a personal loan:

You have high-interest debt

This week’s average interest rate on credit cards is over 18%, and some personal loan rates run as high as 36%. If you find yourself with high-interest debt, a new personal loan can help you consolidate them and make one payment at a lower interest rate.

Not only does consolidating debt cut down on the amount of time it takes to pay bills off, but it’s also likely to save you a good chunk of money.

You’re juggling debt

If you’re spending too much time each month getting all your bills paid or if bills sometimes fall through the cracks and you end up with late payment fees, using a personal loan to pay off debt can make life a little easier. The wise move …….


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