Digital News Report – Many Americans are considering several debt consolidation options heading into the holiday season and new year. The Federal Reserve estimates that Americans are spending less on their credit cards and more on other personal loans. Despite the decline in revolving debt, more is being transferred to non-revolving credit.
Renters carry a higher personal loan balance as a percentage of their total income. According to recent data provided by the Federal Reserve, renters are borrowing 23.99% of their total income in personal loans.
Homeowners only owe about 5.02% of their income in personal loans. They also owe about 10% of their income in outstanding mortgage debt.
Citibank and other banks offer a variety of loan products. There are two basic types of debt consolidation loans: secured and unsecured. The bank is offering non-secured loans for below 5%.
The bank also offers non-secured loans for between $300-$7,500. The bank says they can give an “instant” online decision. Loans over $5,000 may require security.
Borrowers may want to consolidate student loans and credit card debt. The goal is to lower monthly payments and the overall interest rate.
HSBC says the application process only takes minutes and that they can give applicants an answer quickly.
You do not need to be a homeowner to get a loan from HSBC. They will consider how long you have lived at your residence and the amount you pay in rent.
By Tina Brown