Have unanswered questions about the Public Service Loan Forgiveness (PSLF) Program? Even if you secure a personal loan with a low interest rate, the longer term means higher overall interest paid. Consider a loan of $10,000 with a 3-year term and a 15% APR. Total interest costs would be $2,480. Now take those same loan terms but stretch the payment out to 10 years and you get total interest of $9,360. One way to help reduce costs is to make sure you get a personal loan with no prepayment penalties so you pay it off more quickly, when your budget permits.In an emergency, and if no other possibilities present themselves, this may look like an acceptable price to pay, but customers must be very careful not to trap themselves into a cycle of debt, where they repeatedly borrow more to pay off the fees of a previous loan.
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