People are always looking for a way to relieve the burdens of their debt. One excellent option to consider, to help ease the stress of having multiple credit cards or loans, is a debt consolidation loan.
Debt consolidation is when you use one loan, usually a personal loan, to pay off all of your existing debts, allowing you to only have one payment instead of many. You are consolidating all of your debts into one loan. This usually lowers your total monthly payments and gives you a fixed time frame for your debt to be paid, unlike revolving credit where you can continue to pay on it for years because you can keep adding to your balance again and again. It becomes a pay it off, add to it, pay it off, add to it, pay it off cycle that can be difficult to get out from under.
Debt consolidation can be extremely helpful to some one who is struggling to make all of their credit card or loan payments on time every month. It can also be a great way to simply save money every month. Debt consolidation can also help increase your credit score in some instances almost 100 points. The best way to determine if debt consolidation is a viable option for you is to speak to a trusted lender.
Facebook Live Debt Consolidation Q&A Recap
Debt consolidation loans come with a lot of questions. To help get some insights I sat down with two experts from First Alliance Credit Union, Troy and Kim, live on Facebook to gain clarity about what debt consolidation is and when it can be most helpful.
We had an excellent conversation and answered questions from viewers as well. Some of the topics we were able to cover, in short time together, were the different types of debt consolidation, how it affects your credit score, and we even learned about some free resources that First Alliance members have access to.
If you missed the Facebook Live session, you can watch it below:
Kim and Troy definitely care about our membership and know how to help them with managing their debt. The key take-aways from our conversation are:
- Debt consolidation gives you a fixed payment, so you no longer have to wonder when you will pay off your debt
- You can consolidate your debt with a personal loan, home equity loan, or a even a car loan.
- You don’t have to be afraid to ask for help getting your finance back on track; even if debt consolidation isn’t the right answer for your situation there are lots of resources out there that can still help you.
- A low credit score doesn’t mean you can’t do a debt consolidation loan; in fact in many situations it will actually improve your score.
Watched our Facebook Live session and still have questions? Then check out these additional resources and blog posts, or send us your questions! Plus, download your free debt consolidation calculator to help you decide if debt consolidation is a reasonable option for you.