From personal loans and credit cards to payday loans and overdue bills, repaying multiple debts at once can be overwhelming. Debt consolidation is a proactive strategy that helps you combine your debt into a single payment and establish a clear path to reducing or eliminating your debt.
Debt consolidation involves taking out a new loan to pay off multiple other loans and debts. This means you’ll only have to make one monthly payment, ideally at a lower interest rate, helping you manage your finances more effectively and reduce the total interest paid over time.
Only worry about one monthly payment instead of many.
Pay less interest on your debt, especially if you consolidate high-interest credit cards.
Improve your credit as you make consistent, on-time payments, leading to even better interest rates and options in the future.
Bonus: Fewer bills to manage and a clear action plan to reach your debt repayment goals means less financial anxiety.
A personal loan from WFCU can be used to consolidate and pay off your existing debts on a fixed repayment schedule at a competitive interest rate.
An unsecured line of credit is a more flexible solution to debt consolidation. It offers similar benefits of a personal loan; however, as revolving credit it will continue to be available in the future even after you pay it off.
HELOCs are specifically designed for homeowners, providing all the same benefits of the Line of Credit with the added benefit of an even lower interest rate.
Consolidating your higher–rate credit card balances onto our low-rate Collabria Visa credit card can save you up to 9% in interest each month. And periodically, special offers for balance transfers will offer even lower introductory rates.
Debt consolidation is only one step in the pursuit of better money management, not a cure-all silver bullet. Consolidating your debt will help you better manage your cash flows while repaying your debt, but it won’t fix the habits that caused the debt in the first place. By working with a WFCU Member Consultant, we can help provide the right tools and resources to get you on the right track and keep you there.
At WFCU, we recognize that every financial situation is unique. Our quick guide below can help you decide if debt consolidation is the best option for you before meeting with one of our credit professionals.
Debt consolidation isn’t a quick fix, but can be a powerful tool in your journey toward better money management. The key is to consolidate with purpose, commit to repayment, and rebuild better habits. If in doubt, speak to one of our credit experts to help guide you.
Plus, with access to our Monthly Budget Builder, it’s easier than ever to learn about your financial well-being and set achievable goals.
For registered products including, LIRA, LIF, RRSP, RRIF, RESP and TFSA:
Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).
For other eligible deposits:
Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).
For more information regarding deposit insurance, visit the FSRA website.
