Citibank Offer: Unsecured Debt Consolidation Loans

The confusion of multiple debts building up can be overwhelming, one answer to this is the Citibank offer for unsecured debt consolidation loans. This doesn't make your debt disappear, but can make it more manageable.

Is an unsecured debt consolidation loan from Citibank for you? To begin figuring that out let's look at the loan's requirements. With Citibank (and most other institutions) you need to be at least 18 years old, have identification, a Social Security number, a physical address where you reside in the United States, a verifiable source of income and references, and good credit. It is very common that when looking for a debt consolidation loan your credit has possibly suffered, and an unsecured loan will not be a possibility for you.

Once you've determined that you think you're eligible for a consolidation loan, you should look at whether you believe an unsecured loan is you best debt management option.

An unsecured loan is on the basis of your credit history, where as a secured loan has something like a home, or possibly a car that you own, backing up the loan. Because an unsecured loan does not have something for collateral, the unsecured loan comes with a much higher interest rate, because the bank is taking a higher risk, and you'll want to compare this with your current debts interest rates. Of course, while the bank is taking a higher risk with an unsecured loan versus a secured one, you are taking less of a risk. If for some reason you find yourself unable to make the payments on your unsecured consolidation loans the banks recourse is to sue, while if you have a secured consolidation loan they can foreclose on your home. While it is still a serious matter if you do not make your unsecured loan payments and your credit report will be affected accordingly, this is arguably a smaller problem than losing your home or vehicle. Hopefully, with a consolidation loan you will be able to have lower monthly payments and only one bill to pay a month, but of course if you are paying less each month, it will take you longer to pay off the debt and over that time your high interest rate for your unsecured loan will mean that overall your total debt will be higher. That doesn't mean consolidation loans are always a bad idea, but you need to look at your current financial situation and what you think your future will look like and work out your options from there.

Many banks and credit unions, including Citibank, offer unsecured debt consolidation loans, once you decide you qualify and this will work for you be sure to ask the bank lots of questions about the loan options they offer.