How to determine if debt consolidation is right for you

Debt consolidation can be a life preserver or an anchor, depending on how you go about it. The following are some guidelines to consider:

Consolidate the right debt
Scrutinize the interest rates you are paying on your debt. High-rate loans – like many credit cards – are obvious choices for consolidation, but loans with low interest rates – like some types of student loans – should not be consolidated.

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Understand your debt
Debt consolidation is a tool, not a cure-all. If your spending habits are out of control, you need to address that before you take out a consolidation loan. If you don’t, you could end up even deeper in debt. Use the links on this page to access free tools to help you understand and manage your money wisely.

Research your options
Understand the risks and benefits of all your options before you choose the loan that is best for you. If you need help, credit union representatives can help you figure out which loan type will most benefit you. Find a branch near you.

Consider your debt consolidation options

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