Find the Best Personal Loan for Your Needs
Hawaii is one of the states in the US with the highest cost of living. The cost of living is estimated to be double the cost of other expensive states in the US. On top of this, taxes are high in Hawaii. This is a state that does not have job growth that is worth noting because of lack of space and because it is anti-business.
Hawaii ranks 15th in total debt in the US, with the average debt being $6,937 per person. Though the average credit score of the state is 691, its residents are unhappy about the cost of living.
Utilities, groceries, transportation, and health care are all expensive. Plenty of people attribute this high cost of living to the import of goods from the mainland.
Even basic utilities like electricity is twice as high as the prices in Alaska, which is the next most expensive state in the US. People work 2-3 jobs in Hawaii, just to pay the rent, and because of the ACA health care law, lots of full time jobs have been eliminated.
Personal Loans for Debt Consolidation
A new analysis sheds light on Hawaii having the second highest debt-to-income ratio in the US. Hawaiian residents have a median income of $31,905 annually, but have a debt balance of $67,010.
Majority of the debt may be because of residents trying to pay for basic needs. Just paying a mortgage, or housing rental can cause a crater in a Hawaiian resident’s pocket.
When cost of living and debt get together, it is a bad combination, and can send people into debt further. High debt is not only difficult to pay down, but also damages a person’s credit score.
In such scenarios, consolidating the debt makes sense. If the debt from several cards can be consolidated, it will give you an idea of how much money is needed to pay down the debts.
The next step would be to try and get a personal loan for that amount. The approval of the loan amount, the interest rate and the term might depend on your credit score. Once the debt is paid off, you will have to just pay off the loan.
Since personal loans come with fixed term and fixed interest rate, paying them back might be a lot easier.
There may be lenders who might be okay with lending to people with bad credit. However, the interest rates might be high, and the term longer. In this case, you will have to check if it is worth consolidating your debt, and taking out a personal loan.
There are several debt counselors and experts who can give you advice on this. It would be a prudent idea to go to counselors who have been approved by the government to make sure you get sound advice. But don’t assume anything, after the ACA health care debacle and about a thousand other examples, you cannot trust government that much.
Best Banks for Personal Loans in Hawaii
Finding the best rates for your credit score is made easy when you start with these options:
First Hawaiian Bank
With First Hawaiian Bank, you get an option between borrowing a fixed amount or a personal line of credit. Both are considerable choices if you don’t want to jeopardize any valuable asset you have.
Bank of Hawaii
For unsecured personal loans with a 36-month payment term, you can expect the Bank of Hawaii to charge you around 6 to 14 percent APR. They have fixed rates, giving you predictable monthly payments.
Hawaii State Federal Credit Union
Hawaii State Federal Credit Union allows you to borrow as much as $75,000 as well as select your payment terms from either variable or fixed interest rate.
HawaiiUSA Federal Credit Union
Whether you want to take that well-deserved vacation or pay high-interest loans, HawaiiUSA Federal Credit Union offers personal loans with great rates.
Hawaii Pacific Federal Credit Union
Because of local decision making and processing of loan applications, Hawaii Pacific Federal Credit Union can help you get the funding you need ASAP.
American Savings Bank
American Savings Bank offers personal loans for as low as 5.99 APR for $10,000 loan amount and 48-month payment term.
A word of caution: Payday installment loans, cash advances, and car title loans may be easier to get but remember they come with much higher interest rates. They can be a good option if you're absolutely sure you can pay it off quickly.
Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.