Debt Consolidation Loans

Digital News Report – Americans are using fewer credit cards but more consumer credit in general. Americans are refinancing less, according to data released by the Mortgage Bankers Association (MBA). Fewer people are able to qualify for the home loans. The Federal Reserve says the outstanding debt used for revolving credit is shrinking. The amount declined 4.1% in February (annualized rate).

Banks are still offering unsecured debt consolidation loans. Citibank is offering unsecured loans between $300 and $7,500. The bank may ask for collateral on loans over $5,000. The interest rate will depend on the credit score. Customers with a bad credit score will pay higher interest rates. The goal is to get a rate lower than the payday loans and/or credit card debt that is outstanding.

The loan terms range from 12 to 60 months. The bank tells Digital News Report that the interest rate is “fixed” throughout the entire term of the loan. There is a quick online application process with an “instant” online decision. There is no prepayment penalty on their personal loans. This means that if you do pay the loan back ahead of schedule you will not be penalized.

Source: digitalnewsreport.com