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Consolidating & Paying Off Debt


Was one of your New Year’s Resolutions to get a handle on paying off your debt? GREAT! If you’re having a hard time getting started, we have some ideas.

Debt consolidation might be a good idea if you can get a lower interest rate than what you’re currently paying across your debts. This would reduce interest costs, lower your monthly payment(s), and/or help you pay off debt faster. Debt consolidation rolls multiple debts – typically high-interest loans and credit cards – into a single payment. There are multiple ways to consolidate and pay off debt – though, not without some risk. Here are a few options you may consider to consolidate your high-interest debt for savings and quicker payoff:


Debt consolidation loan – this is typically an unsecured personal loan, ideally with a lower Annual Percentage Rate (APR) than what you are paying on the other debts.




Balance transfer to a low-APR card – this tactic leverages a low-interest credit card to transfer your high-interest credit card balances over to.




Home equity loan or home equity line of credit – if you’re a homeowner, you may leverage the equity in your home and use it to pay off your other high-interest debts.




401(k) loan – if you have an employer-sponsored retirement account like a 401(k), you are typically able to take a loan from it. However, this should be something you consider as a last resort after you’re ruled out a balance transfer card and other types of loans.




Our Member Advocate Specialists are certified financial coaches, and are always happy to look at your financial picture to help you make the right choice for you. Cutting Edge offers consolidation loans, credit cards with no balance transfer fee, home equity lines of credit, and more! Contact us at 866-653-4392 or to get started.

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