Debt Consolidation

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Debt Consolidation

Truth or Myth - Debt consolidation is good for your financial life

Debt consolidation is good for those people who are unable to satisfy their financial liabilities and want to replace multiple unsecured bills with a single monthly payment plan. This debt relief option helps you pay less on interest rates and save money.

You can consolidate debt in the following 2 ways:

  • Debt consolidation program - This is where a company helps you organize an easy and budget-friendly single monthly payment plan.
  • Debt consolidation loan - This is where you take out a loan to pay back multiple creditors instantly. The new loan may result in a lower interest rate, lower monthly payment or both.

Real and smart debt plans to manage your finances

Apart from consolidation, there are 4 other debt plans that can help you get financial freedom. Check out the plans to know which one will be the best for you.

  • Debt settlement: This option helps you take control of your financial life by paying a reduced amount up front. You can use a debt settlement calculator to find out how much to pay and save.
  • Debt management: This option helps you save on the interest rates after attending a debt counseling session. You get a smart budget plan that helps you reduce expenses and make payments to creditors.
  • Interest arbitration: In this debt plan, you obtain a secured loan and repay your loans with higher interest rates. You'll have to make only one payment every month on the new loan.
  • Bankruptcy: This option is the best when you want to pay back your creditors under court supervision.

    There are 2 types of bankruptcy you can file depending upon your income and financial liabilities.

    • Chapter 7 bankruptcy - This bankruptcy plan helps you pay back your creditors within 3-4 months. It is more properly known as straight bankruptcy.
    • Chapter 13 bankruptcy - This bankruptcy plan helps you repay your bills 3-5 years. You need to have a regular source of income for passing the means test.

How right advice on debt consolidation helps you save money

The debt consultants of America are of the opinion that you need to act very carefully in order to regain complete control on your financial life. The debt consolidation success rate is undoubtedly very high. There are instances wherein people have been able to save as much as 60% by following the 8 tips.

  • Formulating a budget based upon your income and expenses
  • Spending money as per your budget
  • Making single monthly payments
  • Abstaining from useless expenses
  • Refusing new credit card offers
  • Co-operating with the counselors
  • Making extra payments whenever you can
  • Getting help from a good company
  • You can have a look at our list of reliable companies and choose the one which gives you debt assistance at an affordable rate.
Information from

How Can Members First Help?

Financial Calculators - Our calculators will help you set repayment goals, and help you to determine if debt consolidation is a good option for you.
  • Cost-of-Debt Calculator - The interest you pay on your debt can quickly become very expensive. Use this calculator to help determine just how expensive your debt has become. Enter all of your credit cards and outstanding installment loans balances. Find out how much you owe, how much interest you are scheduled to pay and how long it will take to pay it all off. 
  • Credit Card Pay-off Calculator - Want to pay off your credit card balances? Use this calculator to help set repayment goals.
  • Personal Debt Consolidation - Use this calculator to determine if debt consolidation is a good option for you.
Personal Unsecured Loans - We offer personal loans that can help you consolidate your debt with a fixed rate, fixed term option.  

The Fine Print
Any links to outside websites are provided as a courtesy for information purposes only. Any products or services sold on this website are not guaranteed by Members First Credit Union, nor does the Credit Union endorse or control the information appearing on these websites or the actual organizations publishing these sites. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may differ than those at Members First Credit Union.

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