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Personal loans are an affordable way to borrow money, and during the COVID-19 pandemic, they’ve no doubt been a lifeline to the millions of Americans grappling with income loss.
The upside of a personal loan is that you’re not limited in how you spend it. When you take out a mortgage, you must use that loan to buy a home. With an auto loan, you’re financing a car. A personal loan lets you borrow for any reason you want. Credit cards do the same, but personal loans tend to charge much less interest, and don’t drop your credit score unless you fall behind on payments.
If you have a personal loan, you may wonder how your balance compares to that of the average borrower. According to new research by The Ascent, the average new personal loan balance is $6,825. But whether your balance is higher, lower,