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Debt Consolidation

Move your debts into one simple
accessible location

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What is Debt Consolidation? 

Debt Consolidation is a financial strategy that aims to simplify and manage multiple debts more efficiently. When individuals find themselves juggling various loans, credit card bills, or other outstanding loans. Instead of dealing with numerous creditors and varying interest rates.

Using your homes equity for debt consolidation 

Consolidating your debt can be done in various ways, and one option is to use your home’s equity. This method is known as a home equity loan or a home equity line of credit (HELOC). By using your home’s equity, you can borrow against the value of your property to pay off your debts. 

Using your home’s equity for debt consolidation can have several advantages. Firstly, home equity loans often come with lower interest rates compared to other types of loans, such as personal loans or credit cards. This can result in significant savings over time. 

Secondly, consolidating your debts using a home equity loan can simplify your financial situation. Instead of dealing with multiple creditors and varying interest rates, you’ll have just one loan to manage. This can make it easier to keep track of your payments and reduce the chance of missing any. 

Combine Debts

Juggling debt can be difficult. Talk to a UCCU expert and see if consolidating your debt into one location for easy payment and convenience

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Frequently Asked Questions

Can I consolidate different types of debts together?

Yes, you can consolidate various types of debts, such as credit cards, personal loans, medical bills, and student loans or any other kind of debt into your HELOC

Will debt consolidation hurt my credit score? 

Initially, consolidation may cause a minor dip in your credit score. However, as you make timely payments on the new loan, your score should improve due to reduced credit utilization and better debt management. 

Is debt consolidation the same as bankruptcy? 

No, debt consolidation and bankruptcy are different approaches. consolidation involves repaying your debts with a new loan, while bankruptcy is a legal process that discharges certain debts entirely. 

Debt Consolidation vs Balance Transfer 

Debt consolidation and balance transfer are two popular methods for managing and reducing debt. While they both aim to simplify your debt payments, there are some key differences between the two. 

Consolidating your debt, involves taking out a new loan to pay off multiple debts. This allows you to combine all your debts into one monthly payment, often with a lower interest rate.  

a balance transfer involves moving your existing credit card balances to a new credit card with a lower or 0% introductory interest rate. This can be a great option if you have high-interest credit card debt and want to take advantage of a promotional period with lower interest rates.