Debt Consolidation Loan

Are you feeling overwhelmed with bills and you can’t keep up? Don’t get lost making payments to multiple lenders and an array of various debts. With a debt consolidation loan you’ll find freedom from debt with one consolidated loan term and a specified end date.

Debt Consolidation Loan - what is it

What is debt consolidation?

Debt consolidation is when you combine your debts into one single payment. The loan makes paying bills easier with one monthly payment for all the debts combined.

There are two significant benefits of consolidating debt. First, depending on how many different bills you’ve combined and how often you were missing payments, you may reduce late fees from multiple lenders. This figure can add up to a significant amount each month.

The second benefit is saving money by lowering your annual percentage rate. You’ll often lower your interest rate, which in turn reduces your total debt and monthly payment. Please see the current annual percentage rate available online – debt consolidation loan rates.

debt consolidation loans - how does it work

How do debt consolidation loans work?

Debt consolidation loans merge your existing debt into one unsecured personal loan. You may combine any previous obligations such as credit cards, medical bills, outstanding contracts, or any other outstanding debt payments. The primary debts to combine are ones that have a higher annual interest rate, monthly service fees, or late fees. Merging these into one lower monthly payment with a lower interest rate saves fees and additional interest costs.

Furthermore, unlike credit card debt, interest on a debt consolidation loan is not compounded interest. Compounded interest builds interest on unpaid interest previously collected. In comparison, a consolidated loan has a fixed rate without compounded interest.

A borrower applies for a specific loan amount covering the debts or speaks directly to a loan officer to find a solution that works best for their budget. Either way, the debt settlement now has a single monthly payment with a set loan balance and a specified repayment period. You’ll get free of debt in no time because your debt relief now has an end goal you’re working toward. With each monthly payment, you’ll see your outstanding balance go down.

debt consolidation loan - close credit cards?

Do I need to close out my credit cards to get a debt consolidation loan?

Not always. Money FCU’s debt consolidation loan is different from a debt management program or negotiating your debt with the lender. When you negotiate or use a debt management program to repay credit card debt, they negotiate a lower total payment for payment in full. In doing so, you agree to close the account with them. Equally, the lender agrees to take a loss but gets a negotiated payment to close an unsecured credit line account that is high risk. This type of debt negotiation is otherwise known as debt settlement.

The benefit of a Money FCU debt consolidation loan is you may be able to keep your former credit card accounts open, especially if they’ve been open a long time. That’s because your credit score takes into account the length of time a credit card has been open. So, if you have a credit card that’s been open for 20 years, you don’t want to close that. As long as it’s not maxed, which if you’re paying it off with a debt consolidation loan, shouldn’t be, it will help your credit. By closing them, you won’t be tempted to use them again and get yourself in the same position that you’re trying to fix.

We certainly understand the need to have a credit card though, especially for emergency situations, renting a car, or other unexpected situations.

Need help getting out of debt?

We have financial coaches ready to help. Whether you want to improve your credit, make a budget, or create a plan to reduce your debt, our coaches are ready to help you. This service is free to all Money FCU members.

What will getting a debt consolidation loan do to my credit?

Having a low credit utilization score and high available credit line shows creditors you’re not living beyond your means and can handle your existing debt. Furthermore, if you keep the accounts open with minimal or no use, you increase your available credit to total credit ratio. As a result, this looks favorably in your credit history and can raise your credit score. We may require that you close other credit cards though.

The Credit Union is where I got my start and has always taken good care of me despite moving 10 different times.

Bruce – Tallahassee, FL
credit union testimonial Kelli

You guys are always so friendly when I call, I love calling all of you because you’re always so upbeat and nice!

Kelli – DeWitt, NY

I started banking with you in 2000, almost 19 years ago. Best bank ever, I moved to CA and you made banking easy when doing electronic banking wasn’t really popular yet.

Jesse – Syracuse, NY

Everything, anything you guys do with me is done 200%. I KNOW that you’ve got my back.  Thank you for this, and for everything you help me with. I truly appreciate it.

Marian – Mahopac, NY

I commend your staff; they are always very pleasant and willing to assist my needs.  Customer Service is very important to me and the credit union definitely shines in this area.

Kathy – Clay, NY

This is by far the best credit union, you guys are so good, you’re always on top of everything and you make me feel like my account is safe.

Regina – Phoenix, NY

I do not say it often enough, but you have great staff!  Nothing is ever a problem, they are terrific!  Amy just helped me out big time and Debbie is always my #1 at the credit union.

Jeff – Wake Forest, NC

I just wanted you to know that it is so nice to get a real person when I call in instead of an automated machine.  I really appreciate it.

Anne – Pittsboro, NC

I just LOVE all of you there. People ask me why I use a credit union in Syracuse and I tell them you can’t beat the customer service!

Denise – Monroe, NY

Thank you for watching for fraudulent activity so diligently.  Not only do you notify me when there is suspicious activity, but you are quick to help recover the money.

Sandy – Liverpool, NY

I’ve been in Charlotte for 7 seven years and I will not change banks because of this type of customer service.

Elliot – Charlotte, NC
credit union testimonial Catherine

Thank you MFCU for all the work you do and for really treating your customers like family.

Catherine – Baltimore, MD
credit union testimonial Michelle

I have to say it again – our credit union is absolutely the best! Hands down, no one else even comes close to the exceptional customer service and knowledge that you receive at Money FCU.

Michelle – Syracuse, NY
credit union testimonial Cindy

I told the car dealer I am sure that I want use Money for financing. The difference is only $7.00 per month. You have the very best customer service of any financial institution that I have worked with. Your customer service is worth every penny of the $7 per month and then some!

Cindy – Tully, NY
credit union testimonial Diane

Each representative takes a special interest in any request made, with coordinating efforts by everyone. At a time when I was in transition, MFCU gave attention to what I needed to continue with them, now over 40 years.

Diane – Wilton, CT
credit union testimonial Michael

I have been a member since 1987 and would NEVER, NEVER, EVER leave Money FCU under ANY circumstances!!

Michael – Clifton Park, NY
credit union testimonial Lisa

I wanted to let you know how much I love having Money instead of Chase! You guys have all been amazing since I have opened my account and I am so happy that I switched!!

Lisa – Syracuse, NY
credit union testimonial Henry

I just love Debbie. She’s my hero!

Henry – Gastonia, NC
credit union testomonial Tony

As we are wrapping details around our third vehicle loan inside of a year or so, I just want to say thank you again. Your customer service is off the charts, and you are a pleasure to deal with.

Anthony – Phoenix, NY
credit union testimonial Pat

Thank you to all of you! You girls are so wonderful! I love my credit union.

Pat – Syracuse, NY
credit union testimonial Lisa too

I thought I would take this opportunity to share with you what phenomenal employees you have. We couldn’t be happier to be blessed enough to have found MONEY FCU, and all that this bank encompasses.

Lisa – Baldwinsville, NY
credit union testimonial Angela

I moved everything out of M & T Bank to you because of the service I receive. I just love you guys!

Angela – Manlius, NY
credit union testimonial Robin

MONEY Federal Credit Union is people – a great group of people – who leave no doubt that while they are helping me, I am the most important thing going on that day.

Robin – Chappaqua, NY
credit union testimonial Jason

I am not sure who is working their magic, but without it my wife and I wouldn’t be able to purchase this house we fell in love with in a neighborhood we fell in love with. I truly appreciate everything Money Federal Credit Union does for my family!

Jason – Baldwinsville, NY


Kerry – Ossining, NY
credit union testimonial Erik

I have been a member since around 1992 or so and, even though I no longer work at Mutual of New York I have had nothing but excellent service from EVERYONE and I will never stray.

Erik – East Syracuse, NY

When you walk in the door you are always welcomed with a smile and happy greetings. Nothing is ever hard to do. When I need a loan it’s done and ready for me and I don’t even have to do anything! Just come in and sign!

Deb – Liverpool, NY
credit union testimonial Vera

You guys are the greatest. So professional and up to date with technology!

Vera – Warners, NY
credit union testimonial Danielle

I have been banking with MFCU since I was 17 years old. I left NY and banked with other companies but I came back to MFCU. I am so happy that I did!! Your staff has always been so helpful. I just figured you would want to know that your staff is great and they deserve an extra day off :)

Danielle – East Syracuse, NY
credit union testimonial Eileen

You guys haven’t changed a bit since I opened my account in 1987! You are all still so nice to deal with and I’m glad the changing times hasn’t hardened you into being unappreciative of your members. I now live in NJ and you are the best Credit Union I have ever had the pleasure of doing business with!

Eileen – North Arlington, NJ

I remember when I joined the CU in 1980 and you were located in a closet upstairs, and you would write the number of members and the percentage rate on a chalk board on the wall.

Joanne – Syracuse, NY

I just wanted to let you know that your staff has been so helpful since the move out of the building. The staff is always quick and kind. You said that a Credit Union is much like a Bank…I would say that the Credit Union is much better than a bank. I appreciate you guys!!

Michele – Baldwinsville, NY
credit union testimonial Lisa 3

I just wanted to let you know how awesome you are! I tell anyone who’ll listen about the GREAT customer service I get from the MONEY FCU. With commercial banks becoming less and less friendly and helpful and more and more costly, you guys are the best thing around!

Lisa – East Syracuse, NY
credit union testimonials John

I just went through one of the most painless processes getting a home improvement loan. I couldn’t believe how quick and smoothly everything went. I was quite impressed at the level of service. A special thank you also goes out to Debbie for her efficiency and for being so easy to work with!

John – Camillus, NY

I love you guys, one call and it’s done. Love, love, love you all.

Kathy – Fair Lawn, NJ

I just went through the process of taking out a car loan. If it weren’t for Melissa, I wouldn’t have been able to get things done. I wasn’t sure about what to do for so many things, but Melissa did! She was always there for me, quick, soooooo much help. Lucky for me I was smart enough to join your credit union years ago.

Katie – Syracuse, NY
credit union testimonials Meg

I am so grateful to have such kind and helpful people to work with on my banking needs.

Meg – Webster, NY
credit union testimonial Tom

When our office moved I decided to keep my account with you because I don’t mind the 10 minute drive downtown to deal with you guys because you’re always so helpful and friendly.

Tom – Syracuse, NY

I’m ready to apply for a debt consolidation loan.

Great, let’s get you started! Apply for a Money FCU Debt Consolidation Loan. Want to learn more before applying? Call (315) 671-4000 or chat with our friendly agents. We are ready to answer any of your banking questions.