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Credit card debt is particularly severe, having reached levels not seen since the Great Recession.
If youre experiencing these problems, too, your bank may be able to help.
Here are five examples of howyou can get support with debtfrom your financial institution.
Get Financial Advice From Experts
TheWorld Economic Forumreported that 50% of Americans are financially illiterate.
This means they dont understand the intricacies of saving, managing and investing money.
Banks are uniquely positioned to help these people, since 81% of U.S. adults have a bank account.
This makes it easy to get thoughtful financial advice with a personalized touch.
Taking advantage of the service could help you make more informed decisions about many different financial situations.
you might use these to get on-demand support as you plan for your financial future.
Your banks budgeting app could be a huge help.
It would help you organize your thinking and track progress over time.
Financial calculators can also be helpful especially when you have debt.
Your bank may have a variety of these on its website.
Plus, youll feel better knowing your financial goal is being built atop a solid mathematical foundation.
Consider Loan Consolidation
A bank can also help you consolidate your debt.
This means taking out a new loan to repay your existing ones.
That way, you only have one debt bill to worry about instead of several.
But loan consolidation isnt just a way to simplify your life it could also save you money.
To understand why, consider the interest rates of your various debts.
Some are probably higher than others.
This means you pay more to borrow money through your credit card than when purchasing a car.
That new interest rate should result in your paying less to borrow the total amount of debt you have.
Banks can help with this, too.
They may not tell you exactly how to approach repaying your debts.
But they can organize your finances so that you feel more confident about working toward your goal.
Having the right financial structure in your life is an important part of managing debt.
For example, the average annual interest rate for payday loans is 372%.
you’re free to usually borrow money from your bank for less than that.
Thats not to say you should definitely borrow more money to repay your debt.
But that can be a reasonable decision, especially when your debt has a high interest rate.
Just think back to the example of loan consolidation.
So, if you better borrow money to start solving your debt problem, banks are a great resource.
Theyll also usually provide you with better support than online-based options.
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