If you live in New York, you know how fast everyday costs can add up. From groceries to rent to utility bills, it can feel like there is always another expense waiting. A new national survey shows that more people are turning to small personal loans just to keep up.
The survey found that 35 percent of Americans have taken out a personal loan of 2,500 dollars or less in the past three years. Even more surprising, 1 in 5 people did this in just the last year.
These Loans Are Often for Everyday Bills
When people think about loans, they usually think big purchases like cars or home repairs. But that is not what is happening here. About 1 in 4 people who took out a small loan said they used it for everyday living costs like food, rent, or utilities. Another 19 percent said they used a loan to cover holiday or seasonal expenses.
More People Are Seeing This Around Them
About 43 percent of people say they are seeing small personal loans becoming more common among friends, family, and coworkers. If it feels like more people around you are talking about needing extra money to get through the month, it isn’t your imagination.
Worry About Paying It Back Is Real
One of the most concerning parts of the survey is that 40 percent of people who borrowed said they aren’t sure they could pay the loan back when they took it out. 15 percent of Americans say they expect to take out a personal loan in the next year, and more than a third of them expect to use it for everyday expenses. About 1 in 7 people believe they may need a loan just to make ends meet.
Interest Rates Still Feel High to Many Families
Even though there have been recent interest rate cuts by the Federal Reserve, most people are still nervous about borrowing. 65 percent say interest rates make them hesitant to take out a loan.
What This Means for You in New York
Living in New York can mean higher costs for housing, transportation, and basic needs. This survey shows that people across the country, including here in our state, are dealing with the same stress. Small loans may help in the short term, but they can also put more pressure down the road.
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