What a Personal Loan Really Costs

Personal loans quote a rate and a payment, but the number to shop with is the total interest over the life of the loan. Because unsecured installment loans carry higher rates than mortgages, the interest share is large: on a $15,000 loan at 11% over 48 months, roughly a fifth of everything you repay is interest, before any origination fee. The term is the hidden lever — stretching the same loan from 36 to 60 months can double the total interest even though the monthly payment drops by a third. Compare loans on total interest and total cost, not monthly comfort, and remember the fastest way to shrink either number is a shorter term you can actually afford.