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WalletHub: MI has 6th Highest Need For Loans During Pandemic

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Michigan has the 6th highest need for loans in the nation. That from a WalletHub survey that looks at the Coronavirus impact on the economy of the U.S.

“Right now, Americans who are having trouble with their finances during the pandemic are searching for all sorts of options to relieve that pressure. From home equity loans, payday loans…”

That’s Jill Gonzalez, analyst for WalletHub.  Their latest survey examines how the coronavirus pandemic has deeply disrupted the U.S. economy, which in turn has hurt the incomes of many Americans. Consequently, many Americans need to borrow money to stay afloat.  WalletHub recently released updated rankings on states where people need loans the most; Michigan came in at number 6.

“And people’s interest in getting these types of loans, varies from state to state. Right now, unfortunately, Michigan has the sixth highest interest in these types of loans right now so it is a state where people do need loans the most due to COVID 19.”

Gonzalez says if you need a loan there are surely some that are better than others.  WalletHub looked at what types of loans people were looking for.  In Michigan, Payday loans came in as the 12th most looked at, while home equity was better, coming in 9th.  Gonzalez says, some loans are more predatory than others.

“Payday loans should always be a last resort; in my opinion they should never even be on the table.  But if you are looking at other types of loans, right now we are seeing better financing rates, so that a least could be a partial silver lining.”

Gonzalez says if possible, borrowing should be the last resort during the COVID-19 pandemic, after people have exhausted all other options, from federal and state government benefits to relief from creditors.  Most major banks and credit unions will offer some form of assistance during the pandemic, such as delayed due dates or waived finance charges. But, Gonzalez says you have to ask. She adds if you have to borrow, credit cards are best for short term borrowing, while personal loans provide a longer-term solution. Home equity products provide the lowest interest rates.  She says ultimately, people should choose what they’re most comfortable with.  You can find the full survey on WalletHub.com.

Jennifer is an award winning broadcast news journalist with more than two decades of professional television news experience including the nation's fifth largest news market. She's worked as both news reporter and news anchor for television and radio in markets from Grand Rapids and Kalamazoo all the way to San Francisco, California.