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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Healey Announces Housing Development Supports at Former Pittsfield Bank

By Brittany PolitoiBerkshires Staff
05:29PM / Tuesday, February 17, 2026

Gov. Maura Healey poses with the bank's old safe. The building is being refurbished for housing by Allegrone Companies. The project is being supported by a commercial tax credit and a $1.8M MassWorks grant for infrastructure improvements.

PITTSFIELD, Mass. — Gov. Maura Healey stood in the former Berkshire County Savings Bank on Tuesday to announce housing initiatives that are expected to bring more than 1,300 units online.

"People come here from all over the world. We want them to stay here, and we want kids who grew up here to be able to afford to stay here, but the problem is that for decades, we just weren't building enough housing to keep up with demand," she said.

"And you guys know what happens when there isn't enough supply: prices go up. We have among the lowest vacancy rates in the country, so against that challenge, we made it our priority from day one to build more homes as quickly as possible."

Approximately $8.4 million from the new Commercial Conversion Tax Credit Initiative (CCTCI) is designed help communities transform empty or rundown commercial buildings into new homes along with $139.5 million in low-income housing tax credits and subsidies through the Affordable Housing Development grant program.

The historic 24 North St. with a view of Park Square has been vacant for about two years, and Allegrone Companies plans to redevelop it and 30-34 North St. into 23 mixed-income units. The administration announced its Commercial Conversion Tax Credit Initiative (CCTCI) and the Affordable Housing Development grant program as ways to aid housing production, both of which Pittsfield will benefit from.

The state is partnering with Hearthway for the construction of 47 affordable units on Linden Street, utilizing the former Polish Community Club and new construction, and Allegrone for its redevelopment of the block.

The Linden Street project is one of the 15 rental developments the Executive Office of Housing and Livable Communities is supporting through $25.7 million in federal low-income housing tax credits, $32.4 million in state low-income housing tax credits, and $81.4 million in subsidies.

Allegrone's project is supported by the commercial tax credit and was recently awarded $1,800,000 from the MassWorks Infrastructure Program.

Lt. Gov. Kim Driscoll said she fully comprehends the importance of housing and how crushing it is in communities that need it and want to build, but face difficulties with high construction costs.

"Housing is the key to keeping people in the community in a safe way and giving them an opportunity to fill those many roles that we need throughout the Commonwealth in cities and towns, large and small, urban and rural, these are all important work. Having somebody fix your boiler, fix your car, we want those individuals to be able to live in our communities as well, particularly in our gateway cities," she said.

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