As you likely already know, income inequality is worse in the United States than it’s ever been before; further, no country currently has a greater disparity between its top earners and its low-income counterparts – another way of defining income inequality – than the United States. The average American isn’t paid as nearly as well as he was in the 1970s. Since then, wages have stagnated when adjusted for inflation.

Since people are living from one paycheck to another more frequently than ever before, society more often looks to short-term personal loans than our parents and grandparents. Personal loans can actually, believe it or not, prove quite helpful – don’t believe all the hype about short-term loans being a bad idea. Check out these benefits of taking out relatively short-term personal loans.

What Is A Personal Loan?

Making sure you understand what personal loans are before discussing their benefits is of utmost importance. A personal loan is one that is not secured by collateral in the event you default on it. They typically have shorter loan terms and higher interest rates than business loans, for example.

You Can Use Personal Loans For Anything

Student loans, car notes, and credit cards can only be used for certain purchases. Personal loans, on the other hand, can be used for anything since they’re disbursed directly into borrowers’ bank accounts.

Personal Loans Raise Credit Scores More Quickly Than Most Other Options

Most loans – take mortgages, for example – take decades to pay off. Personal loans don’t often take longer than one year. While both of these types of debt raise credit score once they’re paid off, taking out personal loans is a solid, reliable means of raising your credit score within a year – or even as few as three months.

Regardless of the reasons behind why you want a personal loan, just know that there’s always a way to get low-priced personal loans pasaena tx.