Why does debt consolidation work?
For real: why take on more debt to get out of debt?
It’s a fair question. But here’s the thing: use the money from a consolidation loan to pay off your other debt. So you’re wiping everything else away. All you’ve got now? One monthly payment and a new sense of relief.
It's More Than Paying Off Debt
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Slash your rate
Your credit card rate is probably rubbing elbows with 20%. Lowering that number means you're putting more money towards paying down the balance. -
Get a single payment
What payment is due when? How much? The question game is over. Get yourself to a single payment each month for easier money management. -
Circle your done date
Unlike your credit cards, Debt Consolidation loans have a payoff date. Circle that date. Cause when you get there you are DONE with the debt. -
Pick the right term
Your debt consolidation loan includes flexible terms from 12 to 60 months. Pick a term that gives you a monthly payment you can work with. -
Nudge your score
Consolidating pays off your credit cards, and that lowers your credit usage. Lower usage can bump your score up. -
Jumpstart your dreams
Getting your debt under control means you can focus on savings. Buying a house, taking a vacation, paying for college. Get those dreams off the back burner.
"I am so relieved. I finally feel like I have a financial future."
4 Steps to Regaining Control…and Hope
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1
Get your info together
Determine what debt you're including. If you're consolidating credit cards, you'll need to provide your credit card account numbers and current balances. -
2
Apply online
Applying for the loan is fast, easy and online. Request the amount needed to pay off your cards. Apply for as little as $500 or as much as $25,000. -
3
Get your check(s)
After you're approved, you'll receive checks to pay off your cards. -
4
Stop Swiping
You’re going to be tempted to start using your cards again – especially when those tantalizing new card offers start showing up in the mail. Remember: you are just getting things under control. And if you start building a credit card balance again, you’ll have to pay that plus the consolidation loan.
"I didn't know a credit union could help me!"
Let's be sure we can. Here's how you can qualify for an MHV Debt Consolidation Loan.
Your credit card interest rate is overwhelming, but you're not behind on any payments yet.
Your credit score is holding steady somewhere above 640.
You're not trying to lower or consolidate a student loan.
Your Smartest Money Move
You’re not alone. At MHV, 43% of our personal loans in 2023 were for debt consolidation. Yes, it’s hard to admit you need the help. But this kind of lifeline? Used right, it can be your smartest money move this year.
*APR = Annual Percentage Rate. Rate available to member in good standing, based on credit qualifications, approved starting November 24, 2023 for loans from $500 and to $25,000. Rate reflects .25% discount for automatic payments from your MHV savings or checking account. As an example, a 36-month term with a fixed rate of 8.74% APR would result in an estimated payment of $31.64 for each $1,000 financed. Subject to change or terminate at the discretion of MHV. Federally Insured by NCUA.