In our digital world, getting a personal loan can be done quickly and from the comfort of home. Given that fact, it’s no surprise that there has been a rise in tech-savvy millennials seeking them out. Unfortunately, that means millennials are adding to their already large amounts of debt.
The main cause for this recent phenomenon is a general lack of financial stability, which leaves many millennials with no funds set aside for emergencies. In the event that an emergency does arise, they are then forced to seek out a quick fix to get them through the situation. In fact, according to a recent study conducted by Bankrate, 20 percent of the millennials surveyed reported they were likely to take out a personal loan in the next 12 months. Given the simplicity and speed for obtaining a personal loan online, it’s no wonder this is a popular option amongst millennials.
Why not use a credit card?
Most millennials have plenty of experience with loans, having already accumulated plenty of student loan debt. Therefore, another loan payment doesn’t seem like a big deal. In addition, credit cards don’t allow for lengthy repayment methods, like most lenders that offer personal loans do. Taking the time typically needed to pay back the full amount using a credit card would damage one’s credit score.
There are times when a personal loan is a good option, but getting one is not without risk. Some of these personal loans come with interest rates upwards of 35 percent, reason enough for borrowers to be well informed before signing on the dotted line. It’s important for those seeking out personal loans to weigh the benefits against the risks. From there, they need to be sure the loan will fit their budget going forward. Otherwise, they could find themselves amidst a more threatening financial crisis.
For those whose loans have driven them into financial troubles, there are options. Reaching out to the West Palm Beach bankruptcy attorneys at Kelley & Fulton to talk bankruptcy is a good start. With extensive expertise in financial law, these attorneys can help you navigate your way through the challenges of the situation, leading you to brighter days ahead.