Bills may be an unavoidable part of life, but they don’t have to
be unmanageable. If you are feeling weighed down by high-interest loans
and credit cards, consider talking to your credit union about a debt consolidation loan.
Debt consolidation loans can help you streamline your debt and save money as you pay it off. Could
a consolidation loan be right for you? Here are the answers to some common
questions about these kinds of loans.
What is debt consolidation?
As the name suggests, debt consolidation is the process of replacing multiple
debt accounts with a single account with one loan payment. Although there
are a few ways to consolidate debt, such as with a credit card balance
transfer, debt consolidation loans are a common and convenient choice
for many people. Note that debt consolidation is not the same thing as
debt settlement, which can damage your credit score and leave you facing
taxes on any debt that is forgiven as part of a settlement plan.
Why should I consider consolidating my debt?
There are several advantages to consolidating debt. For some people, the
appeal of consolidation is the convenience of making a single payment.
It is easier to remember and budget for one payment rather than trying
to juggle multiple due dates. It can also help you avoid late fees associated
with forgotten payments. For most people, however, the biggest benefit
of debt consolidation is the saving money. Debt consolidation loans often
have lower interest rates than the individual accounts people are trying
to consolidate. Over time, the lower interest rate can result in significant savings.
How do I get a debt consolidation loan?
To determine if a debt consolidation loan is right for you, visit your
credit union. The member representative can help you find the right consolidation
product and walk you through the application process.
GCS Credit Union is pleased to offer debt consolidation loans as one of
the many ways we help the members of our
credit union in O’Fallon achieve financial freedom. If you have any questions about loans, membership,
or our savings and checking accounts, call (618) 797-7993.