SALT LAKE CITY (KUTV) — More people are getting loans to cover everyday bills, according to a recent report.
LendingTree researchers reported that 8.2% of Americans are now taking out personal loans to cover their bills. This is up from 3.4% in 2023.
The study shows that borrowers are requesting an average of $4,317 to cover bills.
Gen Z is the most likely to use loans for personal expenses, with researchers adding that borrowers tend to have an average credit score of 574. It was noted that Americans with lower credit scores are more likely to rely on personal loans than those with stronger credit.
Utah is not named as one of the top states where these personal loans are being requested. In fact, Utah ranks 46th among states where borrowers are most likely to request personal loans for everyday bills.
Financial experts provided a few tips on how to handle strained bills, including trimming and negotiating recurring bills, boosting short-term cash flow by working extra hours or selling items, and calling card issuers to lower interest rates if possible.
Experts also suggested letting lenders know ahead of time if you can’t make a payment, as they may provide hardship programs.
To read the full study click HERE.
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