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Q: Help! I’m drowning in debt! I’ve heard about debt consolidation, but what do I need to know before moving ahead?

A: Debt consolidation is the process of moving multiple high-interest debts into a new loan or line of credit.

Here’s what you need to know about debt consolidation.

What are the benefits of debt consolidation? 

Saving on interest payments. Moving your debts to a new loan or credit line with a low interest rate can translate into big savings.

One monthly payment. Say goodbye to scrambling to keep track of and make all your monthly payments!

Fixed payment timeline. How does knowing when you’ll be debt-free sound?

Boost your credit score. Amp up your score with a balance transfer or loan.

What are the disadvantages of debt consolidation? 

May stretch out the payment timeline. More time in debt? No thanks.

Won’t eliminate irresponsible spending habits. You won’t turn into a budgeting beast just because you’ve relocated your debt.

Lower interest rate may not last. Many low- or no-interest credit cards only offer these features as a temporary promotion. Once time is up, the high interest rates hit. Ouch!

How can I consolidate my debt?

1. Personal loan — This will allow you to pay off all your outstanding loans immediately and move your debts to one low-interest loan.

As a member of Coastline FCU you have access to personal loans with no fees and interest rates as low as 7.99% APR*.

2. HELOC — Use your home as collateral for an open credit line.

Interest payments on HELOCs will be affordable and possibly tax-deductible**.

3. Balance transfer — Move your debt to a new credit card with a low interest rate.

As a member of Coastline FCU, you can take advantage of our 7.65% APR*** credit cards to help you get out of debt quicker.

*APR = Annual Percentage Rate. All loans subject to credit approval. Rate may vary based on credit, term and value. Federally insured by the NCUA.

***APR = Annual Percentage Rate. All mortgage loans are subject to credit review and approval. Rates are based on credit history and may vary. Property subject to appraisal. Loan to value, credit history restrictions, loan amount and conditions may apply. Home Equity Lines of Credit have a variable rate feature and the APR may change as a result. The annual percentage rate can amount by which the annual percentage rate can change during any one year period. The maximum APR that can apply is 18.0%. However, under no circumstances will your APR go below 4.0% at any time during the term of the plan. Fixed Home Equity Loans have a fixed rate APR. The maximum APR that can apply is 18.0%. However, under no circumstances will your APR be less than 5.0%. Coastline Home Mortgage, NMLS #273792.

****APR = Annual Percentage Rate. Credit card applications are subject to credit approval. Rates are based on credit history and may vary.

Rates effective as of 01/08/2021. Rates are subject tochange without notice Membership eligibility required.