Personal loans are in good demand in Ohio as the state’s poverty rate and unemployment rates are relatively higher at 14.8 percent and 4.9 percent respectively. Though The Buckeye State is doing well economically based on many indicators.
The demand for personal loans is fueled by the lower median household income of $51,075, which is nearly 10 percent lower than national median household income. Similarly, the average home value at $136,400 is also substantially lower than the national benchmark which stands at $194,500.
Though this just means it is cheaper to live in this state and the quality of life is stellar compared to California and Massachusetts and so on. Taxes are lower in Ohio than those states for one.
The lower house value means that people have lower home equity which may be tapped for meeting financial exigencies. In such cases, people may need to take out personal loans for meeting various expenses.
Personal Loans for Business
Personal loans may be used for meeting working capital expenses of the business. Since Ohio has higher unemployment rates, it is highly likely that people would require starter loans for initiating their businesses.
As personal loans are amongst the most expensive loans, it is advisable not to take these loans for capital investment purposes as longer tenures attract higher rate of interest, further increasing the repayment amount. However, personal loans may be taken out for meeting day to day expenses, which may be repaid in shorter time period.
Further, the use of personal loans for running businesses should be seriously contained and be restricted to emergency cases only. If you require constant injection of personal loans for running your business then you may consider business restructuring or other long term measures. However, for emergency expenses, personal loans may help you in keeping your business afloat.
Personal Loans for Debt Consolidation
As Ohio is a low income state, the number of people having multiple number of loans are fairly high. For a borrower, it is highly inconvenient to manage multiple loans, especially if such loans have different interest rates, tenure and installment payment dates.
In many cases, they may end up missing installment payment, which ultimately reflects badly on their credit report. Bad credit score generally leads to higher interest rates for future loans. It is recommended to take out personal loan for repaying such multiple loans. The borrower may extinguish several loans by taking one personal loan.
This will help in proper debt management. The borrower may also be able to negotiated better terms and conditions for a personal loan. They can also remove the possibility of default since it is far more convenient to manage just one loan, instead of multiple loans.