29_Need-Debt-Consolidation-Loan

Do I need a debt consolidation loan?

These days, it’s nearly impossible to get through life without at least a little debt. Whether you have a student loan, a car or consumer loan, or a mixture of just about everything, it’s important to see the light at the end of the sometimes dark tunnel of debt. If you’ve been looking for a better way to get out from under your debt, it might be time to consider a debt consolidation loan.

What is a debt consolidation loan?

A debt consolidation loan combines multiple, often high-interest loans into one lower interest monthly payment. And, while not always the cure all for every debt scenario, a debt consolidation loan can help you get back on your financial feet and improve your credit. It can also simplify life and reduce the stress of keeping track of multiple payments and multiple lenders.

What are the benefits of a debt consolidation loan?

Aside from the obvious benefit of having only one monthly bill to worry about (as opposed to multiple loans with varying creditors, due dates, and amounts), a debt consolidation loan has many advantages. Perhaps most importantly, a debt consolidation loan can lower your interest rate, especially if you have multiple high-interest consumer debts, such as credit card debt. And, with a lower interest payment and more of your money going toward the principal amount of the loan, you can pay off your debt faster than you otherwise would without consolidating. All of these advantages can help you to avoid missed payments and harassing collections calls, helping you build a more financially stable future.

What are the potential drawbacks of a debt consolidation loan?

Unfortunately, a debt consolidation loan won’t help you all that much if you don’t have a plan for staying out of future debt. In other words, you can consolidate all you want, but it won’t help you in the long run if you fall into bad spending and debt habits all over again. In addition, if your debt load is small enough to pay off within six months to a year at your current pace, and you’d only save a small amount by consolidating, it might be better to pay off your debt in a do-it-yourself sort of way. Get some advice and take some time to calculate how much you’ll actually save by consolidating.

Is a debt consolidation loan right for you?

The answer to this question is entirely case by case. But, after reading about the advantages and potential drawbacks of a debt consolidation loan, you want to learn more, call for a complimentary credit review. We can walk you through the steps to rebuilding your credit, offer advice on your debt consolidation loan options, and help you decide which move is right for you.

News & Events
Feb 13, 2019 / Home Equity

Did you know that 80% of Americans have at least some debt? It’s one of life’s constant battles. And many are fighting it on multiple fronts. If you need a little debt relief, consolidating multiple debts into a single payment with a single lender could save you time and money. But...

Feb 04, 2019 / Money Tips

Saving money is on nearly everyone’s to-do list. It doesn’t matter the time of year or time of life. Saving money is always in fashion. But it’s also easier said than done, which is probably why it’s such an ever-present pursuit. If you’re determined to turn over a new leaf with...

Jan 23, 2019 / Money Tips

If you made a new year’s resolution to be better with your money in 2019, you’re not alone. In fact, 53% of American’s resolve to be save money this time of year. It’s the most common new year’s resolution – even before dieting and losing weight. Unfortunately, only about 25%...

Corporate
200 E South Temple
Salt Lake City, Utah 84111
800-234-0729
Monday - Friday: 9:00 am - 5:30 pm
View In Google Maps
Routing & Transit Number: 324079500
NMLS # 446035

Utah First Federal Credit Union is federally insured
by the National Credit Union Administration.