When it’s difficult to make all your payments on time, or interest rates on your current lines of credit are draining your checking account, consider debt consolidation. This smart financial move may help you get back on track with your monetary responsibilities, may boost your credit score and ease the mental stress of paying multiple bills every monthly.
What is Debt Consolidation?
Put simply, debt consolidation is when you get a loan to pay off various high-interest debts. You become responsible for one payment to the loaning institution, generally at a lower interest rate than your previous commitments.
In addition to making your finances more manageable, debt consolidation simplifies your monthly accounting. Instead of meeting multiple payment due dates to various lenders, you make one loan payment to one lender.
During the process of getting a debt consolidation loan, you will receive a detailed payment schedule that explains when your loan payments will begin, how long they will last and when you will make your final payoff payment.
Debt consolidation is often a good choice for people with high credit card balances and interest rates, a backlog of payday loans, student loan debt, unexpected home or car repair bills, medical expenses or other unsecured loans.
Four Ways to Consolidate Your Debt
You have options when it comes to debt consolidation. At Industrial Federal Credit Union, we can help you discover the best method of consolidating your current debt to make paying bills more streamlined and affordable. Here are four options we often discuss with our members.
Credit Card Balance Transfers:
If you’re having trouble staying ahead of your credit card payments, consider transferring all of the balances to one new, lower-interest-rate card. This type of consolidation allows you to pay down your debt faster because less money is going to interest fees, card membership fees and late fees across several cards. Check out IFCU’s current balance transfer promotion.
Did you know that IFCU has a balance transfer special going on Jan 1, 2022 - March 31, 2022? Transfer your high-rate balances today! Take advantage of 2.99% APR* for 12 months!^
Personal Debt Consolidation Loan:
This option is great for paying down other types of debt, such as an unexpected car repair bill, medical expenses or a loan you need to repay to a friend. A personal loan is set up with a fixed interest rate, fixed monthly payments and a payment schedule so you know exactly how much you will pay each month and when your loan will be paid back in full. Check out IFCU’s current Debt Consolidation Loan special.
IFCU Debt Consolidation Special - as low as 6.99% APR**. Available Jan. 1, 2022 - March 31, 2022.
Fixed-Rate Home Equity Loan:
This option is also geared for homeowners. A Home Equity Loan is similar to a HELOC in that it draws from the equity in your home. However, with a Home Equity Loan, you receive the loan funds in one lump sum payment. You can then use the money to pay off your debts.
Check out IFCU's Home Equity Loan option.
Home Equity Line of Credit (HELOC):
If you are a homeowner, you can use up to 80% of the paid-off value of your home, or equity, to your advantage. A revolving line of credit uses your home as collateral. You can then withdraw funds as needed — once or multiple times — over a 5-year period to pay down debt.
Check out more information on IFCU's HELOC option.
Are you ready to improve your financial situation? We’d love to assist you with your next steps. Check out options available and contact us with your questions about debt consolidation today.
Debt Payoff Calculator
Balance Transfer Special - *Annual Percentage Rate (APR). Promo ends March 31, 2022. The 2.99% APR promo rate applies to balance transfers to an IFCU credit card from a non-IFCU credit card. No minimum balance required. Purchases and cash advances excluded.
^Rate is good for 12 months from the first initial transfer, after which the APR will convert to the cash advance rate of 8.25%, 13.5%, or 14.5%, determined by VISA product and creditworthiness. The APR will be fixed for the Classic card and variable for the Platinum/Select card after promotion period ends. New and current cardholders eligible. Credit card approval depends on creditworthiness and other qualifications. All Credit Union loan programs, rates, terms and conditions are subject to change at any time without notice. Call us at 765-771-8000 option 1 to talk to a consumer loan specialist for current rates, terms and conditions.
Debt Consolidation Loan - **Annual Percentage Rate (APR). All loans are subject to approval and individual rates may vary based on your credit score, terms, and underwriting conditions. Your actual rate may be higher. Certain restrictions and conditions may apply. We may offer other terms and conditions connected with this offer. There may be other costs associated with some loans. Rates are subject to change without notice. Contact IFCU at (765) 771-8000 for more information.