Economics teacher Linda Yards. Hooks shares prominent-sense advice for borrowers
There is lots to know when seeking a personal bank loan. Such as, just how was an unsecured loan distinctive from alot more familiar products, for example auto loans and you may mortgage loans? Exactly what can you use unsecured loans for? Any kind of alternatives so you’re able to personal loans?
To discover the remedies for these and other issues, Investopedia spoke with Linda M. Hooks, head of your Institution off Business economics on Arizona and Lee University in Lexington, Va. Together with top the most significant agencies during the Washington and you will Lee, Dr. Hooks has actually presented and you may typed browse in several monetary section. All of our edited discussion observe.
How Personal loans Vary from Other sorts of Finance
Hooks: A personal loan try a predetermined-commission loan for somebody individual. One borrows currency today and you will repays it over a specific time by paying a similar number month-to-month. By doing this, it is like an auto loan or home financing fee. It’s distinct from among those money because it get not need security otherwise an article of worth for example a vehicles or house you agree to forfeit if you can’t pay.
Hooks: Unsecured loans try flexible. Continue reading
