Citibank Offers Credit Card Debt Consolidation Loans for Customers with Bad Credit

Citibank has offered several types of debt consolidation loans as consumer credit interest rate are increasing while the amount of credit available is declining.

The Federal Reserve on Wednesday also said that the trend may make it more difficult for customers looking for a credit card debt consolidation loan. The Fed revealed that they have updated the consumer’s estimate of outstanding debt and found out that the consumer credit interest rate increased 1.75% in October, while the amount of revolving credit is declining.

The bank’s offering, which is a non-secured debt consolidation loan, is available for amounts from $300 to $7,500. The bank also requires collateral on loans over $5,000, whether you own a home or not, and the interest rate may depend on the borrower’s credit history.

However, the bank said that homeowners can borrow money in excess of $15,000 to use as consolidate credit card balances, student loans, or other forms of debt.

Citibank noted that there are no pre-payment penalties and there available flexible terms between 12 and 60 months, meaning, the fixed rate payments can be paid-off early without penalty.

by http://www.dailyrosetta.com