Debt can feel overwhelming. Managing multiple sources of debt even more so. Instead of keeping track of each of your balances, rates and payment dates–it may be easier to look into debt consolidation. Loan consolidations are a debt management strategy that allows you to transfer your balance from one or more credit cards to a single loan. Here are a few benefits:
Save Money Through Lower Rates and No Fees
According to CreditCards.com, the average credit card interest rate is 16.03%. We all know there are plenty of cards out there with even higher rates as well as penalty interest rates.
Combining your debt from multiple cards into a loan consolidation at United Financial CU can save you money in the long run! Instead of paying 15% – 30% interest on multiple cards every month, make one payment with a lower interest rates. Imagine how much less interest you would owe.
Simplify Your Finances
One of the biggest stressors when it comes to credit card debt is having to manage and monitor multiple accounts and payment dates. Forget about one for even a month and the problem expands upon itself. Consolidating your debt into one package can make it so much easier to take care of and pay down your balance.
Get Out of Debt Faster
Loan consolidation can not only provide you with a lower interest rate and a simplification of your finances, but it can also help you to get out of debt sooner. With all of your credit card debt housed under one loan, you’ll have one easy payment and one interest rate to deal with per month. Not only will you save on interest but more of your payment will go toward the principal of the balance, thereby decreasing the length of your loan!
Check out what United Financial has to offer for debt management today!
If you are looking for additional resources – check out GreenPath Financial Wellness
As a valued member of United Financial Credit Union, we are committed to serving YOU and care about your financial health. As a benefit of your membership, we have partnered with GreenPath Financial Wellness to provide you with access to one-on-one financial counseling, debt management services, and financial education tools.