Tell us what you think!  We want to know what you think about the new mvcu.com.  Share your feedback and enter to win.  Learn more!

Merrimack Valley CU

Online Banking

Forgot Username?

Forgot Password?

Register

Need Help?

Online Banking

Forgot Username?

Forgot Password?

Register

Need Help?

Home / Tools / Debt Consolidation Isn't a Dirty Word
Debt Consolidation Isn't a Dirty Word on 1/8/2022

Debt Consolidation Isn't a Dirty Word

Guess what? You’re not the only one with debt. Most people are juggling several different payment responsibilities each month: credit cards, car loans, store charge cards, gas credit cards, personal loans and even student loans.

It’s easy to feel overwhelmed with so many different bills, different due dates, and balances that don’t seem to be going down quickly. When you hear the words “debt consolidation,” do you picture someone who’s in financial trouble? Actually, that couldn’t be further from the truth!  Debt consolidation is for everyday people who want a smart, strategic plan to manage their debt.

A debt consolidation loan could not only simplify your monthly bill-paying (less checks to write & less payments to schedule), it may also save you some money! Some of your debts could be rolled into one monthly payment, with a lower rate. If you’re currently paying higher interest rates– especially on credit cards– you could end up with a lower payment each month and pay less interest in the long run. Cha-ching!

Here’s an example of what this might look like:

Before Debit Consolidation

TYPE MONTHLY PAYMENT APR REPAYMENT TERM PRINCIPAL BALANCE
Car loan $228.42 9% 24 months $5,000
Store credit card $99.30 22% 36 months $2,600
Gas credit card $111.62 18% 48 months $3,800
Credit card $69.33 15% 36 months $2,000


TOTAL PAYMENTS: $508.67

Total amount of interest paid: $3,510.52

After Debt Consolidation

TYPE MONTHLY PAYMENT APR REPAYMENT TERM PRINCIPAL BALANCE
Consolidation loan $419.85 7.74% 36 months $13,400


Total amount of interest paid: $1,714.60

In this example, the family could lower their monthly bills by $88.82 in the short term, and save $1,795.92 in interest over the life of the debts!

Learn more about personal loans that can help with debt consolidation here.

  • Share:

Category: Budgeting & Debt Reduction



« Return to "New Blog"

You may also like:

1/8/2022

Debt Consolidation Isn't a Dirty Word

Guess what? You’re not the only one with debt. Most people are juggling several different payment responsibilities each month: credit cards, car loans, store charge cards, gas credit cards, personal loans and even student loans.

Read more

Budgeting & Debt Reduction
12/20/2021

Stop the Drip in a "Leaky" Budget

Do you feel like just when you catch up…something hits your budget out of the blue? Like when you suddenly need new tires… or your refrigerator dies and you definitely need to replace it?  Just when you think you’re on top of everything, new expenses seem to pop up.

Read more

Budgeting & Debt Reduction
9/27/2021

Credit Card Theft

Credit Card Theft can happen even when the card is still in your possession – the thief has obtained your number and security information and has created a new card with the same information. And it may just be the first step in obtaining other parts of  your identity.

Read more

Budgeting & Debt Reduction