Debt Management

Debt consolidation can be a really good thing...if you use the opportunity to change your spending habits. In other words, if you consolidate your debt to lower your payments, it isn't the best idea to go out and acquire more debt. That's just logical, right?

The problem is, many people do feel they can get more debt (more monthly payments) because they've eliminated some of their monthly expenses with the consolidation. When in reality, the consolidation should be done so they can "catch up" on their consolidated debt. With the money they save, they could pay extra toward the loan to pay it off faster.

A debt consolidation can be a good move. If you think it might help you out of a tight situation, or simply give you a chance to "catch up" a little, call the First Tech Financial Educators at 800.637.0852 x4681 or email budgeting@firsttechcu.com and they can help you identify if a consolidation loan is right for you.