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Digital News Report – There are two types of debt consolidation loans: secured and unsecured. Both are available from banks and other lenders.
These loans have become even more critical since the economic recession. Credit card loans, student loans and other personal loans have piled up. Data from the Federal Reserve indicates outstanding personal credit is on the decline because people are paying off their debts.
Wells Fargo offers both secured and unsecured debt consolidation loans. Typically the secured, or collateralized, loans will carry a lower interest rate.
Wells Fargo offers bill and debt consolidation loans. If the borrower has collateral, the rates could be reduced. Many homeowners will use their home as security for a personal loan.
But what if you don’t have a home?
“Many people don’t realize that they can also use their vehicle for bill consolidation,” Wells Fargo said in a statement. Whether or not the car has a loan against it, Wells Fargo may still be able to work you.
The bank says customers who use their vehicle as collateral can save money and get a lower interest rate and get more money.
American General Financial Services also offers personal loans for debt consolidation up to $15,000. The company says they have a quick application process without fees. There are no pre-payment penalties on their loans either.
By: Tina Brown