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.

Tags: pittsfield cooperative bank,

Capeless Students Raise $5,619 for Charity

By Breanna SteeleiBerkshires Staff
11:13AM / Friday, December 19, 2025

PITTSFIELD, Mass. — Students at Capeless Elementary School celebrated the season of giving by giving back to organizations that they feel inspired them.

On Monday night, 28 fourth-grade students showed off the projects they did to raise funds for an organization of their choice. They had been given $5 each to start a small business by teachers Jeanna Newton and Lidia White.

Newton created the initiative a dozen years ago after her son did one while in fifth grade at Craneville Elementary School, with teacher Teresa Bills.

"And since it was so powerful to me, I asked her if I could steal the idea, and she said yes. And so the following year, I began, and I've been able to do it every year, except for those two years (during the pandemic)," she said. "And it started off as just sort of a feel-good project, but it has quickly tied into so many of the morals and values that we teach at school anyhow, especially our Portrait of a Graduate program."

Students used the venture capital to sell cookies, run raffles, make jewelry, and more. They chose to donate to charities and organizations like St. Jude Children's Research Hospital, Berkshire Humane Society and Toys for Tots.

"Teaching them that because they have so much and they're so blessed, recognizing that not everybody in the community has as much, maybe not even in the world," said Newton. "Some of our organizations were close to home. Others were bigger hospitals, and most of our organizations had to do with helping the sick or the elderly, soldiers, people in need."

Once they have finished and presented their projects, the students write an essay on what they did and how it makes them feel.

"So the essay was about the project, what they decided to do, how they raised more money," Newton said. "And now that the project is over, this week, we're writing about how they feel about themselves and we've heard everything from I feel good about myself to this has changed me."

Sandra Kisselbrock raised $470 for St. Jude's by selling homemade cookies.

"It made me feel amazing and happy to help children during the holiday season," she said.

Gavin Burke chose to donate to the Soldier On Food Pantry. He shoveled snow to earn money to buy the food.

"Because they helped. They used to fight for our country and used to help protect us from other countries invading our land and stuff," he said.

Desiree Brignoni-Lay chose to donate to Toys for Tots and bought toys with the $123 she raised.

Luke Tekin raised $225 for the Berkshire Humane Society by selling raffle tickets for a basket of instant hot chocolate and homemade ricotta cookies because he wanted to help the animals.

"Because animals over, like I'm pretty sure, over 1,000 animals are abandoned each year, he said. "So I really want that to go down and people to adopt them."

View Full Story