How financial assistance can help you get out of debt – by Maggie Tomasson
March 23, 2021
Debt can be a scary thing to fall into and a hard situation to get out of on your own. If you have multiple loans, are carrying a credit card balance, or are struggling to pay bills, you do not have to get through it alone. A good first step is talking to a lender at your financial institution.
We can help you set financial goals, review your budget, and see how you can eliminate the reasons you went into debt.
One common way financial institutions, including Sunova Credit Union, help people pay off debt is with a debt consolidation loan. This is a type of personal loan that combines any debts you have (car loan, student loan, credit card balances, overdue bills, etc.) into one loan.
Here are a few benefits of a consolidation loan
- A single structured payment
- Save on interest
- Improve your credit score
- Pay off sooner and re-build your net worth
- Free up cash flow
- Reduce stress
Having one loan to pay off simplifies your finances and gives you more financial stability. If you’re approved for the loan, you will only have to keep track of one set payment, which you’d pay off over a fixed term.
If your consolidation loan includes a credit card balance or any high-interest debt, you usually will benefit from a lower interest rate, which will help you pay off what you owe faster. Plus, with the fixed payment, you can’t be tempted to make a minimum payment as you would with a credit card.
With debt consolidation loans, it’s important to watch out for loans with a long repayment period. Though these may give you a lower monthly payment, the extended repayment time means you’re paying more interest over the life of the loan.
If you’re struggling with debt and looking for some support, please reach out to your financial institution, Sunova or otherwise, to explore your options.
As one of Sunova’s lending associates, I enjoy meeting new people and creating lasting relationships. I have always loved spending time with people and encouraging them through different stages of their lives; now, I get to do that in my professional life as well. I’m here to help you find your first (or fifth) home or to help you come up with a plan to streamline your financial situation and reduce stress. When I’m not working, I spend a lot of time playing cards with friends and family, and once summer hits, I try to spend as much time as possible around the campfire. Having been born and raised in Alberta, I have always loved hiking and spending time in the mountain air, but over the last few years, I’ve enjoyed exploring the Whiteshell or spending time in Bird’s Hill Park.