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Personal Loans for Debt Consolidation

Personal Loans for Debt Consolidation
Personal Loans for Debt Consolidation

Consumer debt–credit cards, student loans, auto financing, home mortgages, and more add up to an average burden of $90,460 for the typical American shopper. As inflation rises and interest rates are expected to climb, consumer debt is redefining poverty in modern times. Luckily, there are options like personal loans to help with debt consolidation. 

We’re inching closer towards a break-even point that requires a six-figure salary to keep up with basic necessities and debt obligations. The problem is that six-figure salary jobs are in short supply. The smarter financial move is to get a handle on your personal debt and turn things around. 

A personal loan for debt consolidation is one way to tackle the problem. Customers Bank offers a variety of financial solutions you can count on. Let’s take a look at how it works.

What is a Debt Consolidation Loan?

Most consumers collect debt in various forms. Multiple credit card payments, car loans, and student loans can spread your money pretty thin and make it difficult to make any progress on your debt. A debt consolidation loan takes multiple debts and combines them into one obligation. The bank providing the loan effectively pays off the individual debts, allowing you to make one monthly payment.

A personal loan for debt consolidation can:

  • Save Money with Lower Interest
  • Lower Monthly Payments
  • Simplify Your Finances

Is Debt Consolidation a Good Idea?

Consolidating debt can be a good idea. Unfortunately, it’s not that simple. A personal loan for debt consolidation can make it a little easier to pay off your debt. The problem is that it doesn’t address the consumer behaviors that led to the debt in the first place. 

Getting out of debt takes a two-prong approach. First, you need a strategy for paying off your debt. And second, you need some financial literacy and self-control to change your spending habits. That’s where a personal loan for debt consolidation can help.

Plus, there is a possibility that debt consolidation could damage your credit score. Closing multiple accounts and getting a new, high-balance loan will have a significant impact on your creditworthiness. But if you’re genuinely motivated to get out of debt, you’ll have time to right that ship before you need to borrow money again.

How to Get a Personal Loan for Debt Consolidation

A personal loan for debt consolidation from Customers Bank can help if you’re ready to tackle your debt. But first, you need to know your debt and have a goal. Here are a few quick steps to get you on the path to a debt-free future.

  1. Take Inventory of Your Debt: Accounts, Balances, Interest Rates, & Minimum Payments
  2. Identify Your Goal: Save Money, Lower Monthly Expenses, or Get Out of Debt Fast
  3. Shop for a Personal Loan for Debt Consolidation: Compare Terms & Interest Rates
  4. Choose the Best Option & Complete the Funding Process
  5. Once Funds are Deposited, Pay Your Debtors Immediately
  6. Make a Commitment to New Spending Habits & Diligently Repay Your Loan

The Bottom Line on Personal Loans for Debt Consolidation

Consumer debt is a big burden and there is no one-size-fits-all solution that can magically make it disappear. Getting out of debt takes effort and intention. If you’re motivated to be debt-free, a personal loan for debt consolidation can help make the process easier. Check your rate through our easy online application process today and explore personal loan options for debt consolidation.