Consumers owe less for personal loans than for credit card debt, but they’re piling up debt on personal loans at a much faster rate.
In an analysis of borrowing trends from 2009 to 2019, LendingTree found that nearly 20 million consumers borrowed about $160 billion using personal loans, a tool that gained popularity following the financial crisis.
Like a credit card, a personal loan is an unsecured debt and, because of that, has a fairly high interest rate. But rates can be a good bit lower than on credit cards.
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