Digital News Report – Debt consolidation loans are used to combine multiple debts into one low interest obligation. The goal is to lower the monthly payment and total amount paid.
There are two basic types of DCLs: Secure and unsecured. A bad credit history can make the process more expensive, but not impossible. Borrowers with a bad credit score will typically pay more in interest.
The Mortgage Bankers Association (MBA) says that mortgage loan application volume increased five percent for the week ending January 14, 2011 compared to the week before. On an unadjusted seasonal basis the rate increased 6.4 percent.
Interest rates are increasing. According to Freddie Mac, the average mortgage rate increased from 4.71 percent to 4.74 percent last week. The government sponsored enterprise reports that 15-year and adjustable rates were lower.
Citibank offers a wide range of loan products. The bank offers unsecured personal loans up to $5,000.
Citi is offering unsecured debt consolidation loans with amounts from $300-$7,500 with terms from 12 to 60 months. Amounts over $5,000 may require collateral. The interest rate will depend on the credit score of the borrower.
By Tina Brown