[Alt Text: Dutton Lending can help you acquire a personal loan that fits your needs.]

The right loan can be a very important step in anyone’s financial future. Borrowers who pick the right one with a great interest rate find other debts become easier to consolidate. Those who find one that has incredibly high-interest rates, a ton of fees, and no customer support makes life tough.

Dutton Lending, an online lender specializing in debt consolidation loans, recently put together a guide to receiving a loan in 2023. They know many come to them with their struggle, and their goal is to simplify life a little. Knowing how to get a loan, what to do with it, and how to get back on track with this important step is life-changing information in some instances.

What is a Personal Loan?

A personal loan is an unsecured loan that allows individuals to borrow a fixed amount of money from a lender. It’s then paid back with interest over a set time. Personal loans work for a variety of purposes, such as paying for debt consolidation, medical bills, home renovations, or other major expenses.

Unlike secured loans, such as a mortgage or car loan, personal loans are not generally backed by collateral. Lenders rely on the borrower’s credit and ability to repay the loan. This means borrowers typically need to have a good credit score and a steady income to qualify for a personal loan. Dutton Lending works directly with clients to find out a loan option that works for their specific scenario.

The interest rates and repayment terms of personal loans can vary depending on the lender, the borrower’s credit, and the amount borrowed. Personal loans usually have lower interest rates than credit cards and other high-interest debt, making them a popular choice for debt consolidation and other major expenses.

After approval, the borrower receives a lump sum of money that they can use for any purpose they choose. They then make regular payments on the loan, usually every month, until the loan is paid off in full.

Where’s The Best Place to Get a Personal Loan?

Deciding whether to apply for an online or traditional personal loan ultimately depends on personal circumstances and preferences. Both types of loans have their pros and cons.

Online personal loans have increased in popularity quite a bit in the last decade. A lot of companies like Dutton Lending work with clients 100% online. Why do some consider online options the best?

Convenience: Borrowers can apply for an online personal loan from the comfort of their own home and often receive a decision within minutes. It takes minimal effort to fill out the forms online.

Faster funding: Online lenders typically have a faster turnaround time than traditional lenders, so borrowers may be able to receive their funds within 24 hours. Dutton Lending strives to provide this express service to every client.

Lower rates and fees: Online lenders have lower overhead costs than traditional banks and credit unions. This contributes to their ability to offer lower interest rates and fees.

Online might be perfect for some, but others want a traditional lending option. Solutions like banks and credit unions have their positives, even if the best online lenders have caught up.

Established reputation: Traditional banks and credit unions have a long-standing reputation in the lending industry. Some borrowers feel more comfortable working with them because of that.

In-person support: Borrowers who prefer a more personal touch may prefer to work with a traditional lender that offers in-person support. Going down to an office and talking with someone face-to-face can’t be replicated online.

More flexibility: Traditional lenders may offer more flexible terms and repayment options than online lenders. Dutton Lending is one of a few leading lenders online also offering improved flexibility.

Paying a Personal Loan Off On Time

[Alt Text: Dutton Lending makes getting a personal loan easy.]

A personal loan only makes financial sense if it is paid off on time. Failure to make monthly payments on time can result in penalty fees that set a borrower back financially even more. Sticking to a payment plan for a personal loan can be challenging, but several strategies exist to help keep payments on track.

Create a budget: A borrower should create a budget that includes all monthly expenses and income. This will help them understand how much money is available to put towards loan payments each month.

Set up automatic payments: Most lenders allow borrowers to set up automatic payments from a bank account. This ensures that payments are made on time, avoiding late fees.

Make extra payments when possible: If a borrower has extra money available, make additional payments on the loan. This helps pay the loan off faster and save money on interest charges.

Avoid unnecessary expenses: The borrower should try to avoid unnecessary expenses while focusing on paying off the loan as quickly as possible. This may mean cutting back on dining out, entertainment, or other non-essential purchases in the meantime. Borrowers can’t afford to be tempted into thinking that a smaller monthly payment means there is money left over to spend on frivolous things.

Seek help if necessary: A person having trouble making payments should reach out to the lender to discuss their options. They may be able to work out a new payment plan or defer payments for a short time. This flexibility should not be abused, as lenders only offer this on occasion.

Are Personal Loans Worth it in 2023?

Personal loans can be a useful tool for consolidating high-interest debt, making a large purchase, or covering unexpected expenses. Used for the right reasons, they work.

In 2023, interest rates on personal loans vary quite a bit. Some lenders put more emphasis on credit scores than before, while others provide more conservative lending amounts until a person proves they can make monthly payments.

The increase in competitors helps to keep a lid on interest rates for personal loans. This is good news for borrowers, as there’s still an opportunity to get a much lower interest rate than a standard credit card imposes. That might not make much difference with a small loan, but on a larger one, it can reduce the repayment total by hundreds or thousands of dollars.

Dutton Lending (duttonlending.com) encourages potential borrowers to reach out to them directly to discuss personal loans, especially for debt consolidation. They’re experts in the industry, capable of customizing a solution to get every individual on a path that makes sense for them.