It appears that, these days, personal loans are growing quite a bit in popularity among U.S. consumers.
These loans are a type of unsecured debt, meaning they don’t involve collateral. They vary in size, typically falling somewhere between $1,000 and $100,000. The loans can have variable or fixed interest rates. There are a wide range of things people could use such loans for, from making big purchases to debt consolidation.
According to recent data from TransUnion, personal loans are currently growing faster than any other consumer debt category here in the United States. Reportedly, there is around $120 billion in outstanding personal loan debt in the nation.
Why has personal loan use been growing so much lately? One thing some point to as being a major factor in this is such loans becoming more accessible to consumers through online lenders and technology.
Now, as is the case with any type of debt, there can be the potential for individuals to run into financial trouble in connection to personal loans. So, when taking on this increasingly common type of debt, it can be very important for a person to have a firm understanding of the terms, including rate terms, of his or her loan. This could help with avoiding getting caught off-guard by the terms in the future and with developing a plan for keeping the debt manageable.
Could bankruptcy provide relief to individuals when personal loan debt becomes overwhelming? It is possible. For example, Chapter 7 could provide a route for discharging such debt. It is important to remember though that how appropriate and helpful of a solution bankruptcy would be for a person dealing with debt struggles heavily depends on the details of his or her situation. So, when individuals here in Florida run into financial trouble in connection to personal loans and are considering bankruptcy, it can be important for them to reach out for guidance on their situation from skilled bankruptcy lawyers.