A new year can bring new opportunities and fresh perspective. However, for many people, it can also bring added stress – especially after an expensive holiday season, where debt is often accrued at a higher rate. Recent surveys have discovered that roughly 30% of Americans go into debt during the holiday season, and many don’t pay it off until halfway through the following year.
If you have accrued holiday debt, or if you are managing multiple longstanding loans with various interest rates, debt consolidation can help you streamline your finances and find greater peace of mind.
What is Debt Consolidation?
Simply put, debt consolidation is taking out one loan or a line of credit to pay off other outstanding debts. Such debts can include car loans, credit card debt, personal loans, etc. Doing this enables you to streamline your loans into one monthly payment with one interest rate, and to find mental relief as it helps you efficiently manage your finances.
Common strategies for Debt Consolidation
#1: Balance Transfer
If you qualify for a credit card that has a lower annual percentage rate (APR) than your other cards, applying for a balance transfer credit card is a great option for consolidating your debt (assuming you use it responsibly)!
Many issuers offer introductory rates of 0% APR for a limited time so you can save a significant amount of money on interest. Once your introductory period is over, your interest rate will increase to the market rate. At Nusenda Credit Union, we offer generous introductory periods and competitive rates to help you pay off your debt sooner. Learn more about Nusenda’s Visa® credit cards.
#2: Personal Loans
Personal loans are unsecured loans (meaning no collateral is required to obtain it) or lines of credit that can also help you streamline your debt with a competitive interest rate. Upon approval, personal loans are paid to you in one lump sum so you can pay off your outstanding debts.
Nusenda offers personal loans with reasonable rates to help you take better control of your debt. Applying online is quick and easy!
While paying off debt can be stressful for many, embracing debt consolidation can bring significant financial and mental relief. Whether you apply for a balance transfer credit card or personal loan, taking control of your debt can help strengthen your financial well-being.
At Nusenda Credit Union, we’re dedicated to improving our members’ financial well-being and supporting them through affordable products, friendly service, community involvement, and financial education. We'd love to find other ways to help you save money. You can reach us at 505-889-7755 (800-347-2838 outside the Albuquerque area) or make an appointment to meet with us at any of our branch locations.