Alternatives To Consolidate Different Debts Into One Loan

You can get a Debt Consolidation Loan at a bank or credit union.

While it is usually easy to locate a bank because there are so many branches, it may be more difficult to locate a credit union. Following are alternatives for finding a credit union. Be sure to check eligibility requirements.

• Check with your employer, family members or organizations of which you're a member to learn about local credit unions and to find out if you are eligible to join one.
• Several web sites list credit unions by ZIP code. For instance:
  • National Association of Federal Credit Unions: www.culookup.com
  • National Credit Union Administration: www.ncua.gov

Be careful. A loan from a bank or credit union only works if the new loan has a lower rate of interest than your credit cards. Most loans of this type charge an interest rate higher that that on your cards, but you may be able to find one that's lower. Rates will definitely be lower if you have collateral you can use to secure repayment of the loan. 

If you are having trouble meeting your monthly credit card payments, don't be lured by consolidation loan offers. Explore whether you're better off working with a consumer counseling agency or working out your own repayment plans with the credit card companies.

If you obtain a debt consolidation loan, only use your credit cards for amount you can pay off the month the bill arrives -- except for unexpected medical expenses or other real emergencies.

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