At Telco Credit Union, we can be trusted to help you with your financial needs. Whether you’re looking to open a checking or savings account, finance your home mortgage, take out a loan, or become a Telco member/owner, we are here to help! Telco serves the Eastern North Carolina area, including Greenville, Tarboro, and Rocky Mount.

Have you found yourself overwhelmed or struggling to keep up with different debt payments each month? Or perhaps your interest rates are higher than average and costing you a ton of money? Are you wondering, “Is debt consolidation a good idea?”

Debt consolidation is the process of simplifying your debt payments into a single debt payment (or as few payments as possible). People use it to consolidate credit card debtstudent loan debt, and other types of unsecured debt like medical debt or payday loans.

The idea behind it is that you take your different debt obligations and lump them into one large package. To do this, you’d leverage a debt consolidation option with more favorable terms to pay this consolidated debt off. So instead of having multiple monthly payments to different creditors after you consolidate your debt, you’d only make one monthly payment. And hopefully, this payment is at a lower interest rate.

Is debt consolidation bad? Not always. However, it becomes an issue when people can not pay off the loan before the high-cost sets in.

That being said, while consolidating your debt could be beneficial, proceed with caution as it could also end up costing you more in the long run. It’s important that you fully understand the repayment terms when consolidating your debt. You also want to make sure that you understand the long-term impact on your finances.

We hope this helps! Planning for your financial future can be complicated, frustrating, and difficult, but it can also lead you to financial freedom and increasing your savings. At Telco, we want you to feel that financial freedom. Contact us if you have any questions, or if you’re interested in any of our services! We are proud to serve the Eastern North Carolina area as a primary credit union.

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