Woman obtains $10,000 loan to cover flood damage expenses not covered by insurance.
Terri Graham, a resident of upstate New York, has had her fair share of unexpected financial hurdles. From family vacations, divorce-related expenses, and unexpected home repairs due to a catastrophic flood, Graham has relied on personal loans to navigate these financial bumps.
In July 2023, an unprecedented flood hit Graham's town, causing over $1 million in property damage. The flood, classified as a 1,000-year event, left Graham's home in need of extensive repairs. Unfortunately, her home insurance did not cover the damage, which was deemed an "act of God." To cover the financial aspects of the emergency, Graham took out a personal loan.
Prior to the flood, Graham had borrowed and repaid three personal loans from Best Egg since 2015, appreciating their repayment flexibility. This flexibility proved crucial when Graham needed to adjust her loan payments to accommodate the unexpected expenses from the flood.
The flood caused significant damage, necessitating the replacement of appliances in the basement, including a water heater, furnace, and electric panel. Perishable food in the fridge and freezer was lost, and Graham and her mother went without power for 10 days and clean drinking water for 12 days. To cover the costs of these repairs, Graham took out a personal loan of $10,000 from Best Egg.
However, Graham wishes she had been more cautious about putting family vacation costs on her credit cards. She now makes weekly deposits to her emergency fund to insulate herself from emergency situations.
Graham's daughter also required financial assistance when she switched majors and needed a short-term rental. For this, Graham took out a $5,000 personal loan. Graham also recalled paying $225 per hour to an attorney handling her divorce, for which she took out a $6,500 personal loan.
When it comes to borrowing a personal loan, the amount you can borrow varies significantly depending on the lender and your financial situation. As of Q1 2025, the average personal loan debt per borrower is around $11,600, with loan amounts ranging from $5,000 to $50,000. Eligibility for a personal loan is influenced by factors such as credit score, income, debt-to-income ratio, and financial health.
To make an informed decision when choosing a personal loan, it's essential to check your credit score, compare multiple lenders, evaluate fees and terms, assess your budget, and read reviews and check the lender's reputation. By following these steps, you can find a personal loan that fits your financial needs and capacity.
In pursuit of covering the unexpected expenses from the flood, Graham took out a $10,000 personal loan from Best Egg, a lender she appreciated for its repayment flexibility in previous loans since 2015. Meanwhile, student loans might be another type of personal finance Graham's daughter could consider for her short-term rental needs and academic expenses, given that her major change required financial assistance.
