Most people get personal loans for debt consolidation—here's the average amount.
by Bankrate that analyzed responses from more than 160,000 applicants, debt consolidation was the most reported reason for getting a loan in quarter one, at 38%. An additional 5% of applicants in Bankrate's study selected credit card refinancing as their main motivation.reported that in the last month of 2019, 35.7% of loan applicants were looking to consolidate debt, and 31.4% of applicants cited credit card refinancing as their main reason for requesting a loan.
In addition, both studies revealed that debt consolidation loans were also the largest dollar amounts requested, far greater in comparison to loans for other needs like emergency expenses, vacations, weddings and even home improvements.explains the difference between debt consolidation and credit card refinancing, how each works and how a personal loan could save you money.
Credit card refinancing is helpful when you have high-interest debt on one or more cards and you want to save money by lowering your . It's a good idea to consider refinancing your credit card debt if you know you need more time to pay off your balance, but your interest rates are so high that you feel you can't get ahead.save on interest.
Whether from an online lender or a brick-and-mortar bank, personal loans tend to offer lower interest rates than credit cards — but not always — so it's important to understand the terms of a loan before you sign up for it.Using a personal loan to consolidate debt and/or refinance your
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