Colorado ranks 7th in the US with respect to credit card debt. It has an average credit score of 689, and an estimated $7,773 in credit card debt, per person. The decent credit score indicates that Colorado residents do not mismanage debt. However, what does bother them is the cost of living that is through the roof.
Housing, grocery, health care, and utilities are all very expensive. Even though unemployment is at 2.7% and the median household income is more than the US average, the state struggles with debt.
Housing costs and mortgage rates can vary from the rates in other states. Paying towards a mortgage itself can chip off a major block of the income of a Colorado resident.
Personal loans can come in handy to consolidate debt, as bridge loans, to help with home improvement, plan special vacations and events, and so on.
Personal Loans for Special Vacation Plans
You can take out a personal loan as low as $1,000, up to $35,000, to plan your special vacation.
If you do not want to max out your credit cards, but still would like to make your vacation memorable, then you can think of a personal loan, as an option.
Personal loans get sanctioned quickly and are for a specific term. These loans do not need a collateral, but the interest rates could depend on your credit score.
Since the payments are fixed, it would be easy for you to budget on how to make payments and pay down the debt.
Personal loans are a good choice when you know the amount you need. And, since a vacation is planned, it will be quite easy to budget and procure a personal loan.
However, please take out a loan for the amount you need, and nothing more, as it could land you into significant debt, and repayment could become a problem.
Personal Loans as Bridge Loans
Colorado is looking at increasing the income-to-debt ratio to 50%, as against the 42% earlier. Mortgage lenders are also thinking of not looking at negative items like collections and judgments in your credit report, while lending.
This could only mean good news for people who want to buy that dream home.
However, if based on other evaluation factors, the mortgage that is taken out does not cover all the heads required to buy that home, you could look at taking a personal loan as a bridge loan.