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Consolidating Your Holiday (and other) Debt

white background with white and gray wrapped gifts, tied with silver bows

The credit card bill is one of those forgotten gifts that nobody wants to open after the holidays. If you and your family went a bit beyond your projected budget, there are ways, and very good reasons, to consolidate that debt.

Your Equity is a Good Option
Do you have some equity in your home? Open a home equity line of credit and use the money to pay off your higher-interest credit card debt. It’s a good way to save money overall. Plus, this option could allow you to deduct the interest from your annual taxes. Just be sure to talk with your tax advisor about your options.

Why Consolidating Matters
You have plenty of consolidating options available to you, from personal loans to specific debt consolidation loans and credit cards with lower interest rates. Sure, you can pay what you can on your current credit card and store charge account. You will make some headway over time as long as you pay more than the minimum monthly payment. But when you consolidate that debt a few things happen:

  • You’ll pay off the debt faster. That is, if you transfer the debt to a lower interest rate.
  • Your payments will get smaller. This is especially true if you transfer and consolidate more than one debt into a single loan.
  • You probably won’t miss a payment. When you consolidate several debts into one, you have less of a chance of missing a payment and harming your overall credit.
  • Your credit may improve. Reducing the total number of credit account as well as paying down balances can often increase your overall credit rating.

At St. Helens Community Credit Union, we can help you refinance your high-interest credit card and store charge card debt. Apply for your St. Helens Community Platinum Visa® with a low minimum monthly payment, no annual fees, and no balance transfer fees. Learn more or call 503.397.2376.