Digital News Report – As banks close branches debt consolidation loans may be more difficult to obtain. Because of bank mergers, Wells Fargo and other banks have been closing branches and consolidating their departments.
There are various options available to both homeowners and people who do not own a home. The government also provides some help including food stamps, money and other grants.
The average American household has over $14,000 in debt. The recent credit card act has pushed interest rates higher and has made it harder to establish credit.
A blog post published on creditloan.com this week suggested that many people have “misconceptions” about debt consolidation. Borrowers are under the impression that if they could consolidate their credit card debt into one loan, their troubles will be over.
It isn’t that easy. Staying out of debt will be a long process, but consolidating debt into a low interest loan helps.
The process may begin with a personal debt consolidation loan. Some companies offer a one-stop shopping solution for this loan. You fill out one form and they submit it to various reputable lenders.
The loan repayment terms may be variable. Several lenders may compete for your business and offer free no-obligation quotes. This may be preferable to consolidating credit card debt into another credit card.
By: Tina Brown