Low-Interest Loan
If there’s anything good to take out from this whole COVID-19 situation, it’s the lower interest rates. According to the Federal Reserve, “interest rates will remain at zero percent until the financial effects of the coronavirus pandemic begin to subside”. This is good news for consumers who need a loan.
Personal loans with single-digit interest rates are being offered by various credit unions and lenders to people in need of capital. “Low rates can literally turn back time,” says Ali Wolf, chief economist at real estate data and advisory firm Meyers Research. “If you look at what the monthly payments would be today versus a few years ago, in some markets, the rates – as low as they are right now – [are bringing] that monthly payment back to 2015 or 2016 levels.”
Borrowing money, especially if you have other debts, is not always the best approach to solving a financial crisis. But the affordable low rates make borrowing the lesser evil compared to tanking your retirement.
