The holidays are over, and you’re stuck with the bill.
Maybe it was overspending on giving or an emergency, the fun has ended and it’s time to face the facts – time to pay off those high-interest balances.
In this blog, we’ll transferring high-interest debt to a Dover Federal Mastercard® can streamline paying off your outstanding balances and save you money.
What is Debt Consolidation?
Debt consolidation is a strategy that combines multiple debts into a single loan or credit card, with the goal of making it easier to pay back your debt.
How can this help?
Debt consolidation can help you to:
- Reduce your monthly payments. You can make one monthly payment instead of multiple payments to different lenders, making money management easier and reducing stress.
- Pay off your debt faster. You can pay off your debt sooner by making one lower monthly payment.
- Save money on interest. You can get a lower interest rate with a Dover Federal Mastercard®, which can reduce the total amount of interest you pay.
- Earn cash back. With Dover Federal Union’s Cash Back Mastercard®, you’ll not only benefit from a lower interest rate, you’ll earn 2% cash back on everyday purchases that you can apply to your balance to speed up debt repayment.
Make it Work for You
The most important thing after taking out a debt consolidation credit card is to avoid taking on more debt. Extra debt defeats the purpose of consolidation. Likewise, it’s important to stay on top of payments. This ensures you make progress on repayment while protecting your credit score from taking a dip.
Dover Federal Credit Union’s Debt Consolidation Calculator provides the groundwork for you to determine how this option could help you.
Conclusion
Before you commit to debt consolidation, make sure you understand how it works, compare your options, and assess your finances.
Sit down with Dover’s Money Management team. Our no-cost appointments will help with working out your budgeting needs and discuss appropriate products.
If you qualify for debt consolidation with a lower interest rate and a reasonable monthly payment, it could be a great way to streamline debt repayment and save money on interest.
FAQs
What are the rates?
The promotional rate for debt consolidation only lasts for a limited time. It’s important to assess if you can pay off the loan in this timeframe.
Am I eligible?
A loan officer will evaluate your credit history, debt-to-income ratio, and other factors to determine if you qualify for a debt consolidation
What will my payment be?
While the debt consolidation calculator can give you a good estimate, your actual payment cannot be determined until you apply for your loan.
Dover Federal Credit Union
For 66 years, Dover Federal Credit Union has served as a member-owned financial cooperative, designed to provide access to equitable financial products and services that create stability and lead to establishing generational wealth. Today we serve over 44,000 members, encompassing the military, Delaware families and Employer Groups. Serving Camden, Dover, Middletown, Milford, Smyrna & the New Castle areas in branch & online.
