Overwhelmed by debt? It may be time to consolidate

09:36AM / Tuesday, January 28, 2025Print Story | Email Story

The start of the New Year is a great time to evaluate your financial status and set goals for savings and more. If multiple debts are hurting your ability to meet monthly expenses and save at the rate you want, debt consolidation can help.

Debt consolidation works by transferring your debt from multiple—and often high-interest—sources into a single loan or line of credit. Not only is it easier to pay a single bill to one source, but consolidated debt options have lower interest rates that allow you to pay off your debt faster, which, in turn, frees up cash for savings. However, when choosing a consolidation tool, there’s more to consider than just the interest rate.

Why 0 percent interest may not be in your best interest

At first glance, a 0 percent interest credit card may seem like the best option for debt consolidation. But, as with many good things, the 0 percent interest offered on cards doesn’t last. Most introductory rates are in effect for six to twelve months, at which point the balance owed racks up interest at the card’s regular variable rate (sometimes up to 30 percent)—a rate that’s higher than other consolidation tools, like personal loans and home equity lines of credit (HELOC).

In addition, if you are late or miss a payment during the 0 percent window, you void the introductory 0 percent offer and immediately begin accruing interest charges. FYI, in December 2024, the average credit card interest rate was 24.43 percent while HELOCs clocked in at 8.55 percent and personal loans came in at 12.31 percent.

Benefits beyond low interest rates

If you’re looking for a consolidation option that gives you a bit more control and benefits that don’t disappear over time, you should consider either a personal loan or HELOC.

As the name suggests, a personal loan is a lump sum loan paid to you that you can use to pay down debt now. You then pay back the loan at a fixed rate over a fixed amount of time. One advantage of a personal loan is that you choose the term length and amount for the loan. This allows you to manage repayment of any debt on your terms. Qualifying tends to be quick and uncomplicated (no collateral required), and you may even be approved the same day.

HELOCs, on the other hand, do require collateral in the form of equity in a home or property. Like a credit card, a HELOC requires you to establish a line of credit that you can then draw from over time to pay down debt. While the interest rate for a HELOC is not fixed, it’s likely to be lower than the rate of a standard credit card. The downside of a HELOC is that if you are unable to pay it off in full, the lender can claim whatever property you put down as collateral.

Take control now

While there’s no way to make debt disappear, debt consolidation offers a means to save money on interest, simplify payments, and take control of your finances. But don’t wait. The sooner you get started, the more you’ll save and the closer you’ll be to long-term financial stability.

BIO

Mary A. Coughlin is the Vice President, Manager of Residential Mortgages at Pittsfield Cooperative Bank. She has more than twenty years of experience in residential and indirect lending. She has been a Top Ten Mortgage Loan Originator in Berkshire County for multiple years. Mary is a passionate advocate for finding the right lending solution for customers while ensuring a smooth and collaborative process with underwriters, processors, and the lending institution.

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Social Service Organizations Highlight Challenges, Successes at Poverty Talk

By Brittany PolitoiBerkshires Staff
08:04AM / Sunday, April 05, 2026

Dr. Jennifer Michaels of the Brien Center demonstrates how to use Narcan. Easy access to the drug has cut overdose deaths in the county by nearly half.

PITTSFIELD, Mass. — Recent actions at the federal level are making it harder for people to climb out of poverty.

Brad Gordon, executive director of Upside413, said he felt like he was doing a disservice by not recognizing national challenges and how they draw a direct line from choices being made by the Trump administration and the challenges the United States is facing.

"They more generally impact people's ability to work their way out of poverty, and that's really, that's really the overarching dynamic," he said.

"Poverty is incredibly corrosive, and it impacts all the topics that we'll talk about today."

His comments came during a conversation on poverty hosted by Berkshire Community Action Council. Eight local service agency leaders detailed how they are supporting people during the current housing and affordability crisis, and the Berkshire state delegation spoke to their own efforts.

The event held on March 27 at the Berkshire Athenaeum included a working lunch and encouraged public feedback.

"All of this information that we're going to gather today from both you and the panelists is going to drive our next three-year strategic plan," explained Deborah Leonczyk, BCAC's executive director.

The conversation ranged from health care and housing production to financial literacy and child care. Participating agencies included Upside 413, The Brien Center, The Food Bank of Western Massachusetts, MassHire Berkshire Career Center, Berkshire Regional Transit Authority, Greylock Federal Credit Union, Massachusetts College of Liberal Arts, and Child Care of the Berkshires.

The federal choices Gordon spoke about included allocating $140 billion for the U.S. Immigration and Customs Enforcement, investing $38 billion to convert warehouses into detention centers, cutting $1 trillion from Medicaid over 10 years, a proposed 50 percent increase in the defense budget, and cutting federal funding for supportive housing programs.

Gordon pointed to past comments about how the region can't build its way out of the housing crisis because of money. He withdrew that statement, explaining, "You know what? That's bullshit, actually."

"I'm going to be honest with you, that is absolute bullshit. I have just observed over the last year or so how we're spending our money and the amount of money that we're spending on the federal side, and I'm no longer saying in good conscience that we can't build our way out of this," he said.

Upside 413 provided a "Housing Demand in Western Massachusetts" report that was done in collaboration with the University of Massachusetts at Amherst's Donahue Institute of Economic and Public Policy Research. It states that around 23,400 units are needed to meet current housing demand in Western Mass; 1,900 in Berkshire County in 2025.

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