Feeling buried under a pile of bills? If you're juggling multiple loans and credit card payments and your balances barely seem to budge from month-to-month, you're not alone. Cheer up. You’ve got options.
There are smart, reliable ways to simplify your finances, improve monthly cashflow, and take control through the process of debt consolidation.
How to consolidate debt (with less stress)
Debt consolidation means rolling multiple debts into one new loan with a single monthly payment. The goal is to refinance the debt at a lower interest rate and for a fixed period of time, so you’ll know when the debts will be paid in full. It’s a powerful way to streamline your finances and potentially save money over time.
Three common ways to consolidate debt:
- Credit card consolidation
Transfer high-interest balances to a credit card with a lower rate. This can help reduce your monthly payments, pay less finance charges, and make it easier to stay on track. - Personal loan for debt consolidation
Use a fixed-rate personal loan to pay off your existing debts. You’ll get predictable monthly payments and a clear payoff timeline. You'll see a light at the end of the tunnel and know exactly when you’ll be debt-free. - Home equity loan or line of credit
If you’re a homeowner, you may be able to tap into your home’s equity with a lower interest rate and more flexible terms than other types of credit. Fixed-rate and variable rate options are available. Just be sure to weigh the risks before borrowing against your home.
Debt consolidation advantages and risks
- One loan, one monthly payment – hello, simplified budgeting and better cash flow.
- Lower interest rates can mean substantial savings over time.
- You could pay off your debt faster and feel more in control of your finances.
- Making only the minimum payments or choosing a variable-rate loan could extend your payoff timeline.
- Using home equity for debt consolidation comes with risk, as missed payments could impact your homeownership.
Ready to take the next step?
Before you consolidate, review these key factors:
- Your total debt amount
- Your credit score and history
- Your monthly budget
- Your plan and your ability to pay off the new loan
We’re here to help
Debt consolidation isn’t one-size-fits-all, but it can be a game-changer if done right. Whether you're exploring how to consolidate debt or trying to determine whether debt consolidation is right for you, Golden 1 is here to help you make confident, informed decisions.
To learn more, reach us by visiting a local branch, calling us at 1-877-GOLDEN 1 (1-877-465-3361) or using the Golden 1 mobile app.
