Digital News Report – Debt consolidation loans are used to combine several loans into one single low interest payment. There are two types of debt consolidation: secured and unsecured.
Banks offer both secured and unsecured debt consolidation loans. The interest rate will depend on credit history, loan amount and several other factors.
The decline in home values has made it very difficult for homeowners to qualify for a second loan or secured debt consolidation loan. “The housing market has taken a toll on your available equity?” Wells Fargo asks in a statement. “You may still have options.”
Wells Fargo offers Home Equity Lines of Credit starting at 8.25%. This rate will depend on the value of the home and credit history of the borrower.
The bank also says that they can offer non-secured lines of credit and debt consolidation loans. Those rates may or may not be higher.
Bank of America also says they offer debt consolidation loans. Secured HELOC (Home Equity Line of Credit) loans start at 4.74 and Home Equity Loans at 7.29%. Again, unsecured loans are also available. The loan rate will depend on the amount and home location.
By: Tina Brown