Debt Consolidation for Personal Loans

Debt Consolidation for Personal Loans

23 October 2008

Economic outlook and possible recession

As the credit crisis goes global, there is a high chance that Australia will experience a recession over the next 12 months. We are facing a world where the US economic power house is experiencing a toxic period of debt woe and our major trading partner China has significantly cut back its growth targets.

Due to this combination, we are facing tough times ahead, which could translate into higher unemployment.

Whilst the Reserve Bank of Australia (RBA) is currently fixated on the credit crunch, inflation has crept up to worrying levels. Due to the credit crunch and credit liquidity issues, the RBA has taken the drastic step of dropping interest rates by a full 1% with more cuts likely.

Normally the RBA's main focus is to ensure inflation is kept within a certain range. Unfortunately, the reduction in interest will not help in the RBA's fight against inflation, which is at its highest levels in 13 years.

Australians are facing a double whammy with higher inflation and higher unemployment.

To prepare for the turbulent times ahead, one of the things you can do is to consider your current debts and see if you can cut costs in this area and save money.

One strategy is to consolidate your debts.

Debt Consolidation

Debit consolidation allows you to combine a number of different debts into one new debt or loan.
If you have a number of credit cards or loans, the balances outstanding on all of them can be transferred to a new loan. This is called a balance transfer.

The benefits of doing a balance transfer debt consolidation are:

• Take advantage of a lower rate of interest.

• Only pay one set of account fees.

• Manage only one bill per month.

• Minimum repayments may be lower.

Citibank Personal Credit Loan

Citibank offer the Citibank Personal Credit personal loan. This revolving line of credit personal loan has a balance transfer feature, allowing you to transfer debt incurring items such as credit cards, store cards and personal loans into a single debt facility. It acts in a similar manner to a credit card but has a much lower interest rate on the balance transfer portion of the loan.

If you're interested in a balance transfer debt consolidation, Citibank currently has a great deal with the Citibank Personal Credit personal loan. If you apply now, you will pay an interest rate of just 7.9% pa on the debts balance transferred to the Citibank Personal Credit personal loan. As an added bonus, you will have this low interest rate for the life of the balance transfer amount! It also offers a competitive interest rate on any additional funds borrowed.

If you need to consolidate between $5,000 to $25,000 and are over 18 years of age, earning more than $30,000, you might like to consider the Citibank Personal Credit Personal Loan.

You should consider any termination or exit fees on your current loans or credit cards before taking any action.

For more details or to apply online for a Citibank Personal Credit personal loan to consolidate all your debts into one low interest personal loan - Click here - Citibank Personal Credit.

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