Consolidating Debt with Personal Loans

Debt can creep up on you slowly as a culmination of many things, or as a result of an emergency or unexpected expense. 32%

of Americans do not have access to an emergency fund over $400.00. While saving seems to be impossible when living paycheck to paycheck, reducing expenses is one way to live more comfortably or be prepared when an unexpected expense should arise.

 

Consolidating higher interest debt, such as credit card debt, helps to save on monthly expenses and is something that you can do at your Credit Union. A simple way to gain access to funds quickly is to apply for a personal loan. Members can borrow up to $30,000 of unsecured debt at a rate much lower than the average credit card rate. Utilizing these funds to pay off other debt can save hundreds of dollars in monthly payments, thousands in interest over time, and can provide a light at the end of the tunnel to get that debt paid off versus the seemingly endless cycle of payments for variable rate credit cards.

Benefits of debt consolidation are:

• One monthly payment. No more juggling multiple payments.
• Lower interest rate. What you pay every month is going to reduce what you actually owe, not the constant build-up of interest that comes with credit card debt.
• Pay off your debt faster. On average, it takes about 20 years to pay off credit card debt if you’re just making the minimum payments. Debt consolidation can potentially eliminate your debt in 3-5 years in many cases.

 

To get started, visit our personal loans page and calculate your monthly payments to determine how much you may be able to save. For a limited time, we are offering special rates as low as 5.25% APR* which can help you save even more. Next, apply online here.

 

 

 

 

*Annual Percentage Rate (APR) will not be less than 5.25% or greater than 17.99%. Maximum term is 72 months. The interest rate that you receive and the amount you may borrow will be based on your credit history and will be subject to approval. The maximum unsecured debt per member is $30,000. Payment example: Monthly payments for a $10,000 personal loan at 5.25% APR for a term of 60 months would result in 60 monthly payments of $189.86. Loan proceeds may not be used to refinance any existing loan with Freedom Credit Union. Offer available for a limited time and advertised rates and terms are subject to change without notice. Credit Union membership is required, eligibility requirements apply. Federally Insured by NCUA. Equal Housing Opportunity.