Quick Answer: A credit union debt consolidation loan could simplify your finances and save you money if you’re financially ready. Consider your credit score, spending habits, and ability to make fixed payments before moving forward.

In the first quarter of 2025, U.S household debt reached a record high of $18.2 trillion. A clear sign that many people are feeling the pressure. If you’re juggling multiple debts, consolidating them into a single monthly payment through a credit union may sound like a smart move and for many, it is. But before you apply, take time to assess your financial situation and determine if a credit union debt consolidation loan aligns with your goals.

Here are a few tips to consider before moving forward with a debt consolidation loan:

1. Evaluate Your Current Debt Load

Start by listing all your debts, including credit cards, personal loans, and store cards. Include interest rates, balances, and monthly payments. This snapshot helps determine if consolidation will lower your total interest and simplify your monthly budget.

2. Check Your Credit Score

Credit unions often offer better rates than traditional banks, but your credit score still plays a role in loan approval and terms. A higher score usually means better rates, while a lower score may lead to higher interest or even loan denial. If your score needs improvement, take steps to pay down balances or correct any credit report errors before applying.

You can request free copies of your credit report at AnnualCreditReport.com.

3. Understand Loan Types and Terms

Common consolidation products include personal loans and home equity loans. Both can offer lower rates than credit cards, especially with a credit union. However, be aware of loan terms, potential fees, and repayment periods. Use a Debt Payoff calculator to estimate how much you’ll pay over the life of the loan.

4. Be Honest About Spending Habits

Debt consolidation won’t solve financial problems if spending is the core issue. If you continue to rely on credit cards after consolidating, you may end up with even more debt. Before consolidating, commit to a realistic budget and plan to avoid new debt.

Need help getting started? Try our free Budget Coach tool to create a plan before you consolidate.

Why Choose CCCU for Debt Consolidation?

Credit unions like Clark County Credit Union offer one-on-one support, lower interest rates, and more flexible loan options than big banks. If you’re a Southern Nevada resident, CCCU’s financial experts can help you review your options and apply for the right debt consolidation loan. Contact us at 702-228-2228 or visit www.CCCULV.org to explore credit union debt consolidation solutions designed to help you regain control and reduce financial stress.