The benefits to consolidating debt mirror most consumer’s goals:Cheaper Rate – if you can move all your bills to one loan or credit card with a great low rate, you could save yourself a lot of money in the long run.
- Convenience Factor – you can minimize the number of bills you receive each month by putting it all on one tab
- Faster Payoff – by keeping everything together, consumers tend to stay more focused and organized, which leads to paying off their debt faster
- Better Control – consolidating debt equals better control which in turn helps you protect your financial future; knowing where you stand financially at all times is key to financial success
There are several steps to consolidating your debt:
- Collect all your credit card bills and loans. Look at them individually. Determine which loan or credit card has the cheapest rate.
- Research to see if that truly is the best rate available to you. You may find there’s a better option out there that can offer you a lower rate.
- If you can’t get all your debts on one bill, then try to see how much you can get on it. It’s okay if you end up with two bills. The goal is to minimize as much as possible.
There are several options in consolidating your debt:
- The Credit Card Option – try to move all your debts to one low-rate credit card if possible. Check for balance transfer fees, a large enough credit limit to accommodate your transfers and any other hidden fees that could cost you.
- The HELOC Option – if you own a home, you could use the value of your home to consolidate your debt by taking out a home equity line of credit. Use it to pay off or pay down your debt. This is an attractive option since most home equity lines feature a lower rate than a credit card.
- Personal Loan Option – if you don’t qualify for a credit card or a home equity line, you may need to consider opening a personal loan.
Avadian can help you consolidate debt with a Free Debt Analysis. We offer a free online program called Debt in Focus that anonymously collects your income and debt information. It instantly provides a customized action plan that you can easily understand and implement. We also offer free account reviews, in which we sit down with you and review your current financial situation. We try to look for ways to reduce your debt and make your money grow.
In addition to these great services, we offer the products you need to consolidate debt. We have three great low-rate Visa credit cards, options on a Home Equity Line of Credit and personal loans.
For more on Avadian Credit Union’s services and products, visit www.avadiancu.com or call 1(888) 282-3426.