Debt Consolidation Isn’t a Dirty Word

Guess what? You’re not the only one with debt. Most people are juggling several different payment responsibilities each month: credit cards, car loans, store charge cards, gas credit cards, personal loans and even student loans.

It’s easy to feel overwhelmed with so many different bills, different due dates, and balances that don’t seem to be going down quickly. When you hear the words “debt consolidation,” do you picture someone who’s in financial trouble? Actually, that couldn’t be further from the truth!  Debt consolidation is for everyday people who want a smart, strategic plan to manage their debt.

A debt consolidation loan could not only simplify your monthly bill-paying (less checks to write & less payments to schedule), it may also save you some money! Some of your debts could be rolled into one monthly payment, with a lower rate. If you’re currently paying higher interest rates– especially on credit cards– you could end up with a lower payment each month and pay less interest in the long run. Cha-ching!

Here’s an example of what this might look like:

Before Debt Consolidation:

TYPEMONTHLY PAYMENTAPRREPAYMENT TERMPRINCIPAL BALANCE
Car loan$228.429%24 months$5,000
Store credit card$  99.3022%36 months$2,600
Gas credit card$111.6218%48 months$3,800
Credit card$  69.3315%36 months$2,000
TOTAL:$508.67   

Total amount of interest paid: $3,510.52

 

After Debt Consolidation:

TYPEMONTHLY PAYMENTAPRREPAYMENT TERMPRINCIPAL BALANCE
Consolidation loan$419.857.74%*36 months$13,400

Total amount of interest paid: $1,714.60

In this example, the family could lower their monthly bills by $88.82 in the short term, and save $1,795.92 in interest over the life of the debts!

EVEN BETTER: MVCU is offering rates as low as 4.99%APR* through January 31, 2022.

*See full details, terms, and disclosures for the debt consolidation loan here