Consolidate Your Debt. You might get out of debt faster and save money along the way

Are you blue over your holiday spending? Not enough green to get you out of the red? Here are some tips to help you get back in the black!

When you’re struggling with lots of debt, debt consolidation may be an attractive solution. This term refers to combining your debts into one, and making one monthly payment to one creditor instead of making multiple payments to many creditors. You might even get out of debt faster and save money along the way. There are many options, so review your choices carefully before making a decision. Transferring debt from a high interest rate credit card to one with a lower rate can save you money. If you have a credit card with a low interest rate, you might consider transferring the balance from a high-rate credit card to the lower rate one. Or, you might apply for a new credit card with a lower interest rate. Be careful about introductory rates, also called teaser rates. Make sure you know what rate will be in effect after the first couple of months. If it’s too high, this option may not be your best choice. You can apply for a debt consolidation loan.

There are two types of loans that we offer:

• Unsecured – No collateral is required
  
• Secured – Collateral is required

Unsecured loans are commonly referred to as a personal or signature loan. Examples of a secured loan include an auto with a clear title or a home equity loan.

When you consolidate your existing debt and pay if off with a debt consolidation loan, you are trading several debts for a single debt. Even though you still have the same amount of debt, you may find this beneficial if you get a loan with a lower interest rate(s) than you are currently paying. If you are able to pay over a longer period of time or if there are other benefits such as reward points.

Paying off multiple credit cards with a debt consolidation loan or one credit card with benefits may be a good idea, but be careful about racking up more debt with the open accounts. If you’re tempted to charge additional items, you may want to consider closing the accounts.

At United Poles Federal Credit Union, we can help you determine which is the best option for you. Come by or call us today and make a difference in your life.

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