Debt Consolidation Loan
Debt consolidation|Achieve a healthier financial life
Debt consolidation loans are used to pay off and simplify existing debt by consolidating multiple payments and accounts into a single account with one lender and payment.
Typically, debt consolidation loans can be used for unsecured debt. Common types of debt that a debt consolidation loan can be used for include:
- Credit cards
- Medical bills
- Personal loans
- Payday loans
Advantages of a debt consolidation loan
Debt consolidation loans can be a good idea for many consumers, saving you money on interest and monthly payments, and potentially increasing your credit score!
Interest savings: If you have multiple sources of debt with high annual percentage rates, you can save on total interest if you get a debt consolidation loan with a lower rate.
Lower monthly payment: A debt consolidation loan can help you avoid missed payments and defaulting on issuer agreements, even if you need to choose a longer term length. With a debt consolidation loan that lowers your monthly payments, but not your interest, you will pay more in total but have payments that are easier to handle. That way, you’re less likely to be subject to additional fees and penalty APRs that come with missing a payment.
Improved credit score: Your credit score may increase with a debt consolidation loan. By taking out a new loan and leaving consolidated accounts open but unused, you will have more total credit available. This results in a lower credit utilization rate, which can increase your credit score.
Take action today and enjoy the flexibility to:
- Pay down debt faster
- Have one, smaller monthly payment
- Simplify bill paying
- Improve your credit rating
Contact our member representatives today and discuss your loan options.
Water and Power Community Credit Union will never request sensitive information such as Social Security numbers, Online Banking PINs, passwords, or account numbers by email or text message. Please beware of solicitors who ask for sensitive information. If you receive an email or text message or any other forms of solicitation requesting this type of information, please contact Water and Power Community Credit Union immediately: 800-300-9728