A personal loan is a consumer loan that you can use for just about anything: debt consolidation, covering emergency expenses, paying for a wedding, renovating your kitchen … If you have a financial problem to solve, there’s a good chance a personal loan can help.
Unlike mortgages or auto loans, personal loans are unsecured and often don’t require collateral (like a home or car). Plus, with much lower annual percentage rates (APR) than credit cards, a set payoff schedule and fixed monthly payment amounts, it’s easy to see why personal loans are a popular choice.
Still, taking on new debt is a major financial decision, so make sure you have a genuine financial need, weigh the pros and cons and consider whether there are other, better options for borrowing money.