Personal loans are a type of loan in which a borrower gets a fixed dollar amount and agrees to repay that amount plus interest over a fixed period of time. When looking for a personal loan, it is important for you to know what you are getting into, such as what fees may be involved. Take the time to look into your options and to read any loan agreement carefully before signing it.
Questions to ask before getting a personal loan
- Do you need to spend this money now, or could the purchase or expense wait until you have saved up for it?
- What types of fees are charged?
- Will the interest rate change and, if so, will you still be able to afford the loan payments?
- What would happen if you missed a payment?
- How would this debt affect your budget? Will you be able to make the required payments on this loan or on the other debts you have?
All about personal loans