It is possible to become debt-free?

(WOWT) -- According to the Federal Reserve, the average U.S. household carries $16,748 in credit card debt, $28,948 in auto loan debt and $49,905 in student loan debt. Overall household debt has risen by 11 percent in the past decade. Incurring debt may seem as common as paying taxes but it is possible to become debt-free.

A personal loan may be a good fit for those wanting to pay down debt through consolidation. A personal loan is a type of installment loan with a fixed repayment term and usually a fixed interest rate where the borrower receives a lump sum up front.

Personal loans are beneficial for consolidating debt because:

  • Borrowers can combine multiple debts into one new debt
  • The new debt typically has a lower interest rate
  • Borrowers only have to make one convenient monthly payment
  • Total debt can be paid off quicker
  • Personal loans can be used to pay for education costs, make upgrades to a home or even help pay for a family vacation. For home owners who don’t have enough equity in their home for a home equity loan, a personal loan can cover the costs of an upgrade. While it’s not the best practice to take out a personal loan for a vacation, if used wisely, a personal loan is a better alternative than charging the vacation on a high interest credit card.

    Centris also offers pledge secure loans. This type of loan is a great way to build or re-build credit history. It is a secured loan that uses your savings as collateral. You simply pledge a portion of your savings or certificate to Centris. The pledged amount remains in your account but is inaccessible. We give you liquid funds for the amount you pledge.

    Having sound credit is a crucial component of your financial security. A high credit score provides you the freedom to purchase a home or car at a lower rate. A personal loan is a stepping stone in achieving positive credit provided that you make your payments on time and re-pay within the term of the loan.

    If you’re in the market to consolidate debt or make a large purchase, a personal loan is a great option. Apply for a loan online at webloan.centrisfcu.org (or click here). or learn more about our loan products at centrisfcu.org/personal_loans/ (or click here).

    Centris Federal Credit Union is federally insured by the National Credit Union Administration. All loans subject to approval. Rates may vary based on individual creditworthiness. Rates, terms and conditions are subject to change. For more information, contact Centris Federal Credit Union at (800) 334-2328.