When to use a personal loan and when not to

September 29, 2023

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About this video:

This video is a replay of from The Yukon Project’s live event on September 27th 2023. In this video we discuss when to use a personal loan and when not to.

In this video:

Common characteristics of personal loans
What reason do people get personal loans
How to decide whether you should get a personal loan
Alternatives to taking out a personal loan

What are personal loans

A personal loan is a type of financial arrangement in which an individual borrows a specific sum of money from a lender, typically a bank, credit union, or online lender, with the agreement to repay the borrowed amount, plus interest, over a predetermined period. Unlike loans secured by collateral, such as a car or a home, personal loans are usually unsecured and based primarily on the borrower’s creditworthiness.

These loans can serve various purposes, from consolidating debt to covering unexpected expenses, and offer borrowers flexibility in how they use the funds, provided they adhere to the terms of repayment.

When to use a personal loan

Personal loans have become an increasingly common financial tool in today’s world. These loans, typically unsecured and versatile in purpose, are sought after by individuals from all walks of life. Whether it’s for debt consolidation, home improvements, education, or unexpected expenses, personal loans offer a lifeline to help people achieve their financial goals and navigate life’s financial challenges.