Wells Fargo is launching a new loan-consolidation repayment program online, coupled with a savings tool, that it is targeting at its debt-laden customers who are showing increasing signs of credit stress.
The Wells Fargo Debt Pay Down Solution allows consumers to consolidate debts through a personal loan and shift to credit and check cards with cash rewards that can be used to reduce credit card and personal loan balances. It also is opening an online educational “Smarter Credit” center on establishing and rebuilding credit.
According to Wells, the pay down program also incorporates the bank’s new personal financial management system, My Spending Report, which includes a budgeting feature that helps consumers identify areas to curb spending. Extra funds found can be applied to loan principals to accelerate loan pay down.
“Today’s consumers don’t just need help in managing debt, they need education—and just as importantly—tools for managing their financial lives,” said Ron Shevlin, senior analyst at Aite Group, in a statement.
In its fifth annual homeowners survey, Wells Fargo reports that two in five consumers with debt beyond a mortgage are thinking about the debt each day, and another one in five think about it once a week.