Originally published on WalletHub in 2024

UCF Associate Professor of Marketing Axel Stock, Ph.D. was quoted in WalletHub’s article “Compare Personal Loan Rates.” To access the article in its entirety, click here.

Why do you think advertisements for personal loans seem to be increasingly popping up on TV and online?

Spending decreased during the pandemic; however, consumers saved and increased their spending after it was over. This made them get used to higher spending levels. Unfortunately, income levels did not increase concurrently. Therefore, being unwilling to decrease their spending levels, consumers are seeking personal loans and marketers respond to that.

To what extent do you think the pandemic is affecting personal loans?

Spending in certain categories like travel was limitedly possible during the pandemic. When it was over consumers overspent their actual income in these categories which indirectly creates a demand for personal loans now.

What advice do you have for people who are having trouble making their personal loan payments?

The best advice is to keep careful track of your spending and to set budgets for each expense category. Doing so will allow you to make your personal loan payments regularly.