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Debt Consolidation Loans

Reduce Your Interest Rates, & Lower Your Monthly Payments

Apply Online

Simplify Your Life with a Debt Consolidation Loan

Simplify your finances and take control of your debt with a Debt Consolidation Loan from People Driven Credit Union (PDCU). Managing multiple high-interest debts can be overwhelming, but our Debt Consolidation Loan offers a streamlined solution to help you regain financial stability. By consolidating your debts into a single loan with a lower interest rate and one manageable monthly payment, you can reduce your overall interest costs, lower your monthly payments, and simplify your financial life. Whether you’re dealing with credit card balances, personal loans, or other unsecured debts, our Debt Consolidation Loan is designed to help you achieve financial freedom.

Membership and eligibility requirements apply, with approval subject to application and credit considerations.

Benefits of a Debt Consolidation Loan

Lower Interest Rates: Reduce your interest expenses by consolidating high-interest debts into one loan with a lower rate.
 
Single Monthly Payment: Simplify your finances with one easy-to-manage monthly payment instead of juggling multiple bills.
 
Debt Reduction: Pay off your debts faster and save money on interest over the life of the loan.
 
Improved Credit Score: Making consistent, on-time payments can boost your credit score and enhance your financial health.
 
Flexible Terms: Choose a repayment term that fits your budget and financial goals.

How It Works

Evaluate Your Debts: Identify the debts you want to consolidate, including their balances and interest rates.
 
Apply: Submit your application for a Debt Consolidation Loan online or at one of our branches.
 
Approval and Funding: Once approved, use the loan funds to pay off your existing debts.
 
Repayment: Make fixed monthly payments over the term of your loan, simplifying your debt repayment process.
 
Financial Freedom: Enjoy the peace of mind that comes with having a clear and manageable plan to pay off your debt.

Unsecured Loan Rates

Term


(Months)

≤36

37-60

61-72

73-84

APR*


as low as¹

 11.19% 13.20% 14.25% 15.25%

Secured Loan Rates

Secured Loan

Max Term


(Months)

APR*


as low as
Share Covered 84 5.25%
Credit Builder Loan (Max $2,000) 18 13.00%
CD Secured Loan (No Money Market, IRA, or Club Accounts) 84 APY + 3.50%

Frequently Asked Questions

A Debt Consolidation Loan is a personal loan that allows you to combine multiple debts, such as credit card balances, medical bills, or other loans, into a single loan with one monthly payment. The goal is to simplify debt management and potentially secure a lower interest rate, reducing the overall cost of your debt.
When you take out a Debt Consolidation Loan, the lender provides you with a lump sum that you use to pay off your existing debts. You then make monthly payments on the new loan over a fixed period, typically with a lower interest rate than what you were paying on your previous debts.
Getting a Debt Consolidation Loan with bad credit is possible, but the terms may be less favorable, with higher interest rates or shorter repayment periods. Improving your credit score before applying can help you secure better loan terms.
You can consolidate a variety of unsecured debts, such as:
  • Credit card balances
  • Personal loans
  • Medical bills
Payday loans and secured debts, like a mortgage or auto loan, typically cannot be included in a Debt Consolidation Loan.
A Debt Consolidation Loan can save you money if you qualify for a lower interest rate than what you currently pay on your debts. However, it’s important to factor in any fees associated with the loan and consider the length of the repayment term, as a longer-term may mean paying more interest over time.
Repayment terms vary but generally range from 12 to 60 months, depending on the loan amount and policies. The term you choose will affect your monthly payment and total interest paid over time.
Interest rates on Debt Consolidation Loans depend on factors like your credit score, income, and the lender’s terms. People Driven Credit Union offers competitive rates, and borrowers with higher credit scores are more likely to qualify for lower rates.
Yes, a Debt Consolidation Loan can help improve your credit score over time, especially if you make on-time payments and reduce your overall credit card balances. However, missing payments or taking on more debt after consolidating could negatively affect your score.
A balance transfer credit card typically offers a low or 0% introductory interest rate for a set period, making it an attractive option for consolidating credit card debt. However, the interest rate may increase significantly if you can't pay off the balance during the introductory period. A Debt Consolidation Loan offers fixed monthly payments and interest rates, providing more stability over the repayment term.
Missing a payment can result in late fees and damage to your credit score. If you’re having trouble making payments, contact People Driven Credit Union.
Yes, People Driven Credit Union allows you to pay off your Debt Consolidation Loan early without penalties. Paying off your loan early can save you money on interest.
  • Debt Consolidation: This involves taking out a loan to pay off your existing debts, leaving you with one manageable payment. You are responsible for repaying the full amount of the loan.
  • Debt Settlement: Involves negotiating with creditors to reduce the amount of debt you owe, often resulting in a negative impact on your credit score. Debt consolidation, on the other hand, typically helps preserve or improve your credit score.
You can apply online for a Debt Consolidation Loan at People Driven Credit Union or by visiting one of our branches. The application process involves submitting financial information, including your income, credit history, and outstanding debts. At People Driven Credit Union, we help you streamline your debt and get back on track financially. Contact us today to learn more about our Debt Consolidation Loan options or start your application!

Disclosures

Payment Example: Monthly payments of $20.00 for each $1,000 borrowed at 6.55% APR for 60 months.

*APR = Annual Percentage Rate: The actual APR and loan term is subject to approval and may be determined upon the borrower’s creditworthiness, the amount borrowed, and the type, value, age, and condition of the collateral offered to secure the loan (when applicable). Rates are effective as of today and are subject to change.

¹Special Loan Rate Discount: Benefit from a .25% reduction when enrolling in our autopay service, which is included in the “as low as” rate advertised. The discount is available to those who setup autopay of their monthly loan payment from a People Driven Credit Union checking or savings account.

Membership Requirement:

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:
  • A valid Driver's License, State ID, or Passport with your current address
  • Your Social Security Number
A Membership Share Savings Account is required to establish membership at People Driven Credit Union. Your $5 deposit into this account secures your share in the credit union, giving you access to our full range of services and benefits. The Annual Percentage Yield (APY) for this account is 0.01%, and the minimum deposit is $5.00.

E H L. People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727
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