Loan Center

- Debt Consolidation

Feeling swamped by bills?

If you have multiple loans with different lenders, you may benefit from consolidating your debts. Instead of making various payments to these creditors, you’ll make only one payment to PAFCU. Although debt consolidation won’t immediately improve your credit score, it can help you to effectively manage and reduce your debt over time.

How it Works

When you apply for a Debt Consolidation loan, you’ll first let us know which debts you want to consolidate. If you’re approved, People’s Alliance pays your creditors on your behalf, and then you repay your loan to PAFCU.

  • Enjoy rates as low as 9.99%*
  • Consolidate up to $25,000, including credit card balances.
  • Terms up to 60 months.
  • No collateral is required to secure the loan.
  • Pay no application fees or pre-payment penalties.

The Benefits

  • A lower monthly payment than the total of your current payments.
  • The simplicity of only one bill to keep track of.
  • Potentially save money by paying less interest.

Things to Keep in Mind

It’s important to understand that a debt consolidation loan simply transfers the debt to a new lender, so you still have debt. Additionally, a consolidation loan with a longer repayment period may lower your monthly payment, but increase the total amount you repay. However, you can always pay off the loan faster by making more than the minimum monthly payment.

Other Debt Consolidation Options

  • Credit Card: You can use a Credit Card balance transfer to roll other higher-interest debt into a lower-interest card for an introductory period of 6 months at 4.0%.
  • Home Equity: If you own your home, you can leverage your available home equity to consolidate any kind of debt. Getting a consolidation loan in the form of a new Home Equity loan or line of credit can be a smart way to manage your money.

*The above annual percentage rates (APR) are the lowest rates offered to applicants with direct deposit of net pay and a checking account. Applicants who are not approved at these rates or terms may be offered credit at a higher rate and/or different terms. All loan requests and rates are subject to credit approval.