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Digital News Report – Although the total outstanding credit card debt is declining, Americans are still looking to consolidate high interest obligations.
The goal of a debt consolidation loan is lower the monthly payment and the overall interest paid. Besides credit cards, borrowers are straddled with student loan debt, car loans, payday loans and other consumer obligations.
Citibank offers a wide range of loan products including secured and unsecured debt consolidation loans.
The bank offers unsecured loans specifically designed for renters from $300 to $7,500. The bank says they may require collateral on loans over $5,000. The term of these loans is from 12 to 60 months. They say the interest rate will remain level over the entire term.
The interest rate depends on the credit history of the borrower. Customers with a bad credit score will pay a higher interest rate if they are not declined.
Secured loans will have a lower interest rate. The bank says there are four steps to acquiring the loan.
1) Potential customers can apply online.
2) The customer will receive an email saying the bank has received the application.
3) Borrowers can discuss the loan options with a branch representative.
4) Money can be delivered within one day
The popular financial guru Dave Ramsey says that many borrowers need to change their life style. According to Ramsey, 78 percent of borrowers “grow” their debt back after consolidating their obligations.
Consumers need to live within their means and save money to take care of unexpected emergencies.
By Tina Brown