Dr James Kahn on the best personal loans

Dr James Kahn (photo courtesy of Wallethub)

In WallethubThe recent review of ‘The Best Personal Loans of 2021’, Dr James Kahn, Professor of Economics at Henry and Bertha Kressel University and Chairman of the Department of Economics at Yeshiva University, was one of many experts asked about how Americans can manage their money better.

Here is Dr. Kahn’s advice:

What advice would you give to someone trying to find the best personal loans for their needs?

It’s best to take out loans for one-time expenses, like a car, large household appliance, or house, and not for recurring expenses. And while student loans are often at reasonable rates, it’s very easy to get confused. You need to be honest with yourself and know that you are disciplined enough and have enough income to make the payments and repay the loan on time.

What are some of the common characteristics that the best personal loans share?

Secured loans like auto loans or mortgages are at much cheaper rates than unsecured loans like credit card debt. You can also sometimes get loans at low rates from home appliance dealers. Loans should have scheduled payments that repay the principal over a limited period.

What do you think of the opinion that not having a personal loan is the best personal loan?

It depends on the person. If you have a stable income and take a loan for a specific purpose and can pay it back over time, personal loans can be a useful temporary expedient. But it’s usually better to pay cash if possible and save for unforeseen expenses rather than find yourself in a situation where you have to borrow.

About Judith J. George

Check Also

The Lighthouse: Sask. the director of the shelter used funds for personal loans

An independent investigation found an “overarching culture” of mixing personal financial interests with those of …