Debt Consolidation — a Solution for the Disciplined
With holiday bills coming in, the new year prompts many consumers to take a closer look at their financial situation. If high monthly payments are a problem, debt consolidation may seem like a perfect solution for quick relief. And, it may be for some, but not for everyone. According to one nonprofit credit counseling agency, 70 percent of Americans who consolidate debt end up with the same (if not higher) debt load within two years.
Debt consolidation works in the long-term only if you change your spending habits. If you believe you have the discipline to cut up those credit cards and control spending, debt consolidation may be something to consider if it truly reduces your monthly payments.
TFCU helps its members consolidate debt. Popular forms of debt consolidation include home equity loans, lines of credit or debt consolidation loans.
If credit problems have plagued you in the past, we also recommend credit counseling to ensure debt consolidation is not just a temporary fix for you. Debt consolidation combined with a reduction in spending is the best formula for successful debt management.