Nearly 4 in 10 Struggling Consumers Have Turned to Personal Loans. Here's Why That Is -- and Isn't -- a Good Thing

In June, 38% of consumers who were having a hard time paying their bills turned to personal loans as a means of borrowing in a pinch, according to a recent J.D. Power survey. Consumers who have turned to personal loans over the past number of months may have spared themselves a world of financial pain by opting for these loans over credit card balances. In fact, one major benefit of personal loans is that they tend to charge lower interest rates than other borrowing options.