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Digital News Report – Debt consolidation loans have become very popular during this recession. Many Americans find themselves in debt up-to-their-eyeballs with less than desirable credit scores.
Loans are available for customers with a good, poor or even bad credit history. The Federal Reserve is recommending potential borrowers check their credit score before applying for a loan.
Wells Fargo offers both secured and unsecured debt consolidation loans. Unsecured loans will be harder to acquire than secured loans and may carry a higher interest rate.
“You have already leveraged as much of your home’s equity as you can right now?” the bank asked in a statement. “You may still have options.”
Securing the loan with a boat or car could lower the interest payments. Wells Fargo says that customers may be able lower their interest rate and payments. Currently they are offering a 45-day “break” from payments. This should help cash-strapped Americans.
SunTrust bank offers secured debt consolidation loans. The bank provides several options and terms for a debt consolidation loan.
If the borrower paid-off a $24,000 loan within 36-months the payments would be $730. If that payment is too much to handle, the bank will allow the loan to be stretched-out over 240 months. If the borrower pays off the loan in 20-years under a secured loan plan, the monthly payments would could as low as $172.
By Tina Brown