Digital News Report – Debt consolidation loans are very popular this time of year. Americans are looking for ways to turn their high-interest credit card debt into a low interest loan.
One goal for a debt consolidation loan is to save money by reducing the monthly payments. Renters typically have a higher percentage of consumer debt. The Federal Reserve estimates that 23.99% of a renter’s income is devoted to consumer debt (3rd quarter 2010), while only 5.02% of a homeowner’s income is devoted to consumer debt obligations.
The good news is that both ratios have been declining since 2001. In the fourth quarter of 2001, renters devoted 31.05% of their income to consumer debt. That same quarter homeowners spent 6.57% of their income.
The Mortgage Bankers Association (MBA) reported last week that mortgage applications were higher for the week ending January 7th.
Wells Fargo offers debt consolidation loans for both renters and homeowners. The goal is to pay-off the debt within five years. Wells Fargo offers unsecured debt consolidation loans. “You don’t own a home or you don’t want to use your home as collateral”, the bank said in a statement.
Wells Fargo is looking for unsecured loan customers with a good credit history. If you have bad credit, you might find many loan brokers who are able to offer debt consolidation loans.
By Tina Brown