Should I pay off Credit Card Debt with a Consolidation Loan?

What is a “debt consolidation” loan? This is where multiple debts (such as credit card balances) are rolled into one loan with one payment. Debt consolidation can be appealing as it often results in lower payments with lower interest rates.  

Debt consolidation may be the best move financially for you if you carry high balances with high-interest rates. However, there are pros and cons, which we share below: 

Pros: 

  • You can save money on interest 

  • You may have a lower payment 

  • You roll multiple debts into one loan with one payment

  • You can improve your credit score 

Cons: 

  • Debt consolidation will work against you if you run up credit card debt again. 

What should you do?

Connect with us at MCFCU. Together, we’ll examine your accounts and help you find the best path forward for your financial situation.

Ready to apply?

Use our Personal Loan form to get started. Terms up to 60 months and loans up to $50,000**.

*Loan approval and APR is determined based on application and credit information. Not all applicants will qualify for the lowest rate. **Individuals can borrow up to $25,000.00, or $50,000.00 on a joint loan (available to qualified members).

Don Daugherty