Debt ConsolidationTruWest offers debt consolidation and other personal finance products
When you have multiple debts from different sources, trying to sort through it, all can quickly grow overwhelming. Credit card debt, car payments, and personal loans can all add up faster than you might think. Debt consolidation can help reduce the strain on your finances and allow you to manage one single payment each month rather than juggling multiple payments that may come out at different times.
How to Consolidate Your Debt
There are several strategies you can use to consolidate debt. Consider the debt consolidation loan that is right for your needs, including where you can get the best interest rates.
- Use a balance transfer credit card, which will allow you to transfer the balance from other cards to your current card.
- Use a personal loan to consolidate your debt. Many banks and lenders will offer debt consolidation loans, allowing you to use one large loan to pay off all of your current loans.
- Try refinancing your home’s mortgage to bring all your debts under one umbrella.
Before you can consolidate debt, you will need to have a solid idea of your current debts and how much you typically pay on each one, including what part of that repayment process is overwhelming or putting strain on your current financial situation. You can also work with your lender to create a debt repayment plan that fits your needs.
When Debt Consolidation is a Smart Move
When you initially opt for debt consolidation, it may cause a dip in your current credit score. In some cases, debt consolidation can leave you paying higher interest rates on your debts than you would have if you had continued to pay off those debts on their former schedule. However, in many cases, debt consolidation can offer some positive benefits. When should you opt for a debt consolidation loan? Consider these common scenarios.
- You have multiple large payments due each month. In many cases, those large payments will indicate that you have more debt than you can easily manage, which may indicate that it’s time for you to change your debt repayment strategy.
- You find yourself struggling to make your current payments each month. If you are struggling under the weight of your current debt, it can be highly beneficial to consolidate it under one loan. Debt consolidation loans can also help if you cannot reach a debt settlement or create a strategy for removing some of that debt.
- You can get a better interest rate through a debt consolidation loan than you can for your current debt repayment plans. In some cases, lower interest rates make it easier to manage those financial requirements. Carefully check interest rates before you consolidate your loans so that you do not end up paying more on your loans over time.
Along with your debt consolidation loan, make sure you have a plan in place to help you get out of debt and stay out of debt in the future. A debt consolidation loan can help temporarily alleviate some of the burdens. Still, if you continue to go deeper into debt, it can prove difficult to continue to manage your finances.
Choose TruWest Credit Union For Debt Consolidation and Money Management
Paying down debt can be incredibly difficult. At TruWest Credit Union, we offer options for debt consolidation and money management that can make it easier for you to keep up with current payments and manage your debts. Contact us to learn more about our debt consolidation loans and whether we can help ease that financial burden.
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