Skip nav to main content.
×
cover-art
Pearl Hawaii Credit Union
Android GET - On the App Store
×
cover-art
Pearl Hawaii Credit Union
Apple GET - On the App Store
Checking Account

Debt Consolidation Loan | Getting Rid of High-Interest Debt

Paying off debt is the first step toward a healthy financial life and a Personal Loan may help you take that first step to becoming financially free.

Debt consolidation helps take all of your high-interest bills and rolls them into a single, lower-interest payment. It can reduce your total debt and reorganize it so you pay it off faster. If you’re dealing with debt, a debt consolidation loan can help you reorganize multiple bills with different interest rates, payments, and due dates. Getting rid of high-interest debt is one of the single best uses for a personal loan. Personal loan rates are usually lower than rates of a credit card, payday loan, or other types of consumer loans.

THE PROS

  • With a debt consolidation loan, you can use it to pay off your other debts, such as medical bills or balances on high-interest credit cards. You’ll pay fixed, monthly installments for a set time period.
  • If you’re having difficulty keeping up with multiple payments from multiple lenders this may be a strategy worth considering if you want to lower rates, save money, or lower your monthly payments.
  • Additionally, a personal loan may improve your credit score by moving credit card debt over to the installment loan. A borrower that uses the majority of their available credit on their card will see a lowered credit score.
  • But borrowers beware…

A personal loan to consolidate debt only makes sense if you receive a lower interest rate than you have on your existing debt or if it helps you pay off your debt faster.

NOT ALL DEBT CONSOLIDATION LOANS ARE CREATED EQUAL

  • Some lenders carry fees called origination fees for their Personal Loan (we do not).
  • Many online lenders charge an origination fee on a loan. The fee, usually from 1% to 6% of the loan amount, depends on your credit profile. This fee is embedded into the annual percentage rate (APR) that you receive when you qualify for a loan.
  • Lastly, the best rates for personal loans will go to those with impeccable credit. If you have a limited credit history or a poor credit score, expect to receive higher rates than what is advertised.

 

IS A DEBT CONSOLIDATION LOAN RIGHT FOR YOU?

If you’re already in the hole, each and every cent matters. Please remember we are here to help. The last thing we want is to see you face a negative financial situation that you cannot get out of… When in doubt, please see or call us. Our loan officers will be happy to look at your financial situation to see if we can help you improve your life.

It is important to get your credit score in the best shape so you can get the lowest interest rate possible, compare the different repayment terms, and adjust your budget so you can make on-time payments monthly. You can get a free credit report yearly from the Annual Credit Report website or by calling 1-877-322-8228 where you will go through a simple verification process over the phone.

 

PEARL HAWAII | A TRUSTED LENDER FOR DEBT CONSOLIDATION LOANS ON OAHU

If you’re still not sure whether a debt consolidation loan is the right option for you, call us at 808.73.PHFCU (737.4328) or visit one of our locations on Oahu (Waipio, Waianae, Ewa Beach, Honolulu,  Airport, and Pearl Harbor). Pearl Hawaii is a trusted lender of debt consolidation loans on Oahu. Our team is ready to look at your financial situation and recommend the best option for you.

If you are ready, let’s get started: Apply