Debt Consolidation

Nearly everyone accumulates debt somewhere along their financial journey. Other than the big ones, like a car or house, debt can materialize as a credit card balance, medical bills, tuition costs, vacation expenses, and many other forms. When the combined total of all these monthly payments becomes too much to manage, it might be a wise decision to consolidate all that debt into one payment with one lender.

1. Secured vs. Unsecured. Most members deal with two types of debt; secured and unsecured. Secured debts are backed by collateral, most commonly a home or car, that the lender can seize as recourse if the borrower defaults on the loan. Unsecured debts are not backed by an asset, and as a result typically have higher interest rates due to the increased risk to the lender. Unsecured debts include credit cards, student loans, medical bills, and more.
   
2. When to consolidate? If the cumulative total of your monthly payments is becoming unmanageable, or if your existing interest rates are significantly higher than you currently qualify for, it may be a good time to consider consolidating. Ideally, debt consolidation should help you save money both in the short and long term.
   
3. Visa Balance Transfer. For high interest credit card debt, some members prefer to transfer their existing balances with other lenders to our Visa Platinum Credit Card, which often has a low, fixed promotional transfer rate of 6.95% APR.
   
4. Personal Loans. For members who don’t want an open-ended line of credit or are consolidating more than just credit cards, a personal loan offers a fixed rate, term, and monthly payment which can be made lower with term lengths up to 5 years.
   
5. Paid-off Car Loans. If your car is fully paid off and has retained value, you may be able to secure a loan worth up to the value of your vehicle. The benefits compared to an unsecured personal loan are the lower rates and potential for longer terms and larger amounts.
   
6. HELOCs. Tap into available equity in your home to access longer term lengths and higher amounts with low rates tied to prime rate.

Published June 1, 2026