Community Bank offers debt consolidation solutions
Community Bank offers debt consolidation solutions
by Francesca Sacco
As inflation rises, and prices at the gas pump and grocery store continue to soar, more and more people are turning to credit cards to handle everyday expenses.
While credit cards can be a powerful financial tool that offers many benefits, running up your credit cards balances could have serious financial consequences in the future. U.S. consumers now owe $986 billion on their charge cards, according to Federal Reserve Bank of New York data released in May. That蘑菇视频 a 17% jump from a year ago and a record high, according to analysts at Bankrate. Lending-Tree reports that the median credit card debt per American family is $2,700, while the average is $6,270. Consumers鈥� average credit card balance is $5,910 (up from $5,315 in 2020). And the average credit card APR recently soared to 20.92%, higher than at any point since the Federal Reserve began tracking annual percentage rates in 1994, according to a study from WalletHub. The best thing you can do if you find yourself with large credit card debt is to pay it off as quickly as possible. Otherwise, you could lose purchasing power, suffer negative impacts to your credit score or have less money to pay important bills.
While there are many options to consider when consolidating debt, if you own your home, a home equity line of credit, or HELOC, is a good option. A HELOC is a revolving credit line that is secured by the equity you鈥檝e built in your home. Equity is the difference between the present market value of the home and what you owe on your mortgage loan. 鈥淚f you鈥檙e just paying your minimum payment monthly, you鈥檙e not making a dent on your principal. Most banks have lower or zero fees and lower interest rates,鈥� Rick Nagel, Vice President & Director of Retail Banking at Community Bank, said. 鈥淎 HELOC is a smarter, more cost effective way to tackle credit card debt.鈥�
A HELOC can be used as needed during your draw period, which is the timeframe between opening it up until your repayment begins. You only pay interest on what you borrow from your HELOC. 鈥淭he prices of homes have continued to increase, resulting in additional equity potentially available to borrow against,鈥� Nagel said. 鈥淗ELOCs allow for lower payments that help you pay your debt off quicker.鈥�
Nagel said Community Bank is well-positioned to help the community reach their financial goals. 鈥淥ur team members are experts in consumer lending. We take care of the community,鈥� he said. 鈥淚f our customers are struggling financially, we want to find ways to help.鈥� Everyone蘑菇视频 financial situation is different, which is why Nagel recommends speaking with a trusted financial advisor before making a decision. 鈥淎 lot of people don鈥檛 talk about struggling with credit card debt. There蘑菇视频 a stigma attached to it. But by ignoring it, you鈥檙e making the situation worse,鈥� he said. 鈥淵our situation won鈥檛 change unless you take action. Let Community Bank help.鈥�
About Community Bank
For over 121 years, Community Bank, a locally- managed, independent bank, has offered the communities and regional businesses it serves with comprehensive financial services. Today, Community Bank continues to offer steadfast personal service, coupled with the latest in financial services and technology.
With offices in Pennsylvania and West Virginia, and with dedicated loan officers, Community Bank offers old fashioned relationship banking, notable for its speed, flexibility and common sense.
To learn more about Community Bank, and the services and products they offer, visit www.communitybank.tv.
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