SeaComm Federal Credit Union OFFICIAL BLOG

Three Reasons to Consolidate Your Debt

Debt happens. Credit cards, student loans, and car payments can be difficult to manage month after month. If you want to simplify your situation you can consolidate. Here are a few benefits to consolidating your debt.

One Payment

Many people find it difficult to manage all the payment deadlines from credit cards and loans. Consolidating your debt will give you one payment each month. You won’t have to question if you paid all your bills because you will only have one. You could even get a longer period to pay off the debt which will lower your payments.

Less Stress

Keeping track of your finances can be very stressful, especially if you have multiple loans to pay off. Making multiple payments on time can also feel overwhelming. If you only have to make one payment you’ll have an easier time feeling in control of your finances and that can alleviate your stress.

Improve Your Credit Score

It is normal to see a temporary dip in your credit score when you take out a loan, but you’ll be paying less interest and boosting your credit score in the long run. By consolidating your high interest debts, you’ll be able to raise your score by lowering your utilization rate (what you owe/your credit limit). Experts say you should be around 30%. The lower your credit utilization the higher your score will be.

If you have high interest rates and it feels impossible to pay it down, it’s worth consolidating your debt into one monthly payment. A consolidation loan with SeaComm allows you to combine all of your outstanding balances into one convenient monthly payment. This creates a more reasonable period to pay off your debt, without feeling overwhelmed.

With SeaComm’s loan pre-approval program, LoanEngine™, you might already be pre-approved for a consolidation loan! If you qualify for a pre-approved offer, you’ll be presented with it through our SeaComm Mobile 4.0 app or NetTeller in the “My Offers” tab, via email, and/or a letter through the mail. Click here to login to your NetTeller™ to view your current offers. If you don’t have any offers at this time, be sure to check back every 60 days.

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