If you went overboard on Christmas and are up to your ears in debt, you are probably looking for a way out. Debt consolidation is a really popular way to make debt more manageable. Moving high-interest debts into a new loan or line of credit can not only help you pay off your debt quicker, but also put less money towards the overall interest payment!
What are the benefits of debt consolidation?
- Saving on interest payments. Long-term debt with a high interest rate can cost thousands of dollars in interest payments over the life of the loan - money you may not need to pay! Moving that debt to a new loan or line of credit with a lower interest rate translates into significant savings.
- Simplified payments. With just one monthly payment to make, debt management becomes a lot easier.
- Boost your credit score. If you’ve been falling behind on your monthly payments, consolidating your loans may boost your credit score!
How can I consolidate my debt?
- Personal loan. Taking out a personal loan from Scenic Community Credit Union will enable you to pay off your outstanding loans immediately, and move your debts into one loan.
- HELOC. A home equity line of credit uses your home as collateral for an open line of credit or a fixed-term loan.
- Balance transfer. Moving your debt to a new credit card with a low interest rate will make it possible for you to pay off your debts immediately.
If you are ready to consolidate your debt, call or stop by Scenic Community Credit Union today to discuss your options!