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TruMark Financial Blog
February 24, 2021

What do I need to know about debt consolidation?

If you are up to your ears in debt and strongly considering debt consolidation, there are a few things you need to know before moving forward.

What are the benefits of debt consolidation?

  • Saving on interest payments. The primary benefit of debt consolidation is saving on interest costs. Long-term debt with a high interest rate can cost thousands of dollars in interest payments over the life of the loan. Moving that debt to a new loan or line of credit with a lower interest rate can translate into significant savings.
  • Simplified payments. With just one monthly payment to make, managing your debt will be a lot easier.
  • Fixed payment timeline. Debt consolidation often means having a fixed payment timeline. This makes budgeting easier and allows you to make long-term financial goals, with a fixed date for when you will be debt-free.
  • Boost your credit score. If you’ve been falling behind on your monthly payments, moving your multiple debts to a single low-interest loan can help to boost your score.

How can I consolidate my debt?

  • Personal loan– This will allow you to pay off all your outstanding loans immediately and move your debts to one low-interest loan. A Signature personal loan from TruMark Financial may be the perfect choice with low rates and convenient term options.
  • Home equity line of credit– Use your home as collateral to open a home equity line of credit. TruMark Financial’s HELoC Select offers a competitive, low rate. A lower rate can save you a lot in interest on large balances.
  • Balance transfer– Move your debt to a new credit card with a low interest rate. TruMark Financial offers low rate Visa® credit cards with no annual fee, no balance transfer fees, and no cash advance fees.

If you’re ready to consolidate your debt, we can help. Call, click, or stop by TruMark Financial today to discuss your options.