Holiday debt weighing you down?
Tackle your post-holiday debt with a consolidation loan!
Is holiday debt weighing you down? A consolidation loan takes all of the high-interest debt a person has accumulated from multiple sources (like credit cards and personal loans and lines of credit) and combines them into one more manageable debt. Generally, a consolidation loan is a smart move if the loan reduces your interest rate, allows you pay down outstanding debt and puts you in a better position than continuing to pay multiple creditors would.
In the right circumstances, we’ve found a consolidation loan has helped many of our members:
- save interest costs,
- lower their payments,
- pay off debt faster,
- simplify their finances, and
- feel better.
Take Jessica, she had three credit cards with a total balance on the cards of $25,000. After a little planning and advice, Jessica determined she could comfortably afford a monthly payment of $700.00 to reduce her debt. We were able to approve her for an unsecured loan at a rate of 9% and she was able to pay off the three credit cards in full.
We compared if she wouldn't have applied for a loan and instead applied the $700 payment directly to her cards each month. Applying for the loan resulted in interest cost savings of over $10,000.00. Additionally, Jessica paid off her debt one year and three months earlier. Here what it looked like:
As a note of interest, had Jessica only made the minimum payment, it would have taken her over 32 years to pay off her credit cards. Even worse, she would have paid almost $60,000 in interest!
Through a consolidation loan, Jessica found herself in a much better position personally, financially and emotionally. But each person and situation is unique. Securing the loan (for instance with a home-equity loan), will lower your interest cost and save you even more. Or maybe $700 isn't realistic for you and you need to take a bit more time than Jessica. Whatever your situation, we'll work with you to find a solution that meets your budget and your goals and puts you in a better place financially.
We compared if she wouldn't have applied for a loan and instead applied the $700 payment directly to her cards each month. Applying for the loan resulted in interest cost savings of over $10,000.00. Additionally, Jessica paid off her debt one year and three months earlier. Here what it looked like:
Credit Card |
Consolidation Loan |
|
| Amount | $25,000 | $25,000 |
| Interest Rate | 21% | 9% |
| Payment Amount | $700.00 | $700.00 |
| Term | 4 Years, 9 Months | 3 Years, 6 Months |
| Total Interest Paid | $14,576.98 | $4,208.94 |
| Interest Cost Savings | $10,368.04 |
As a note of interest, had Jessica only made the minimum payment, it would have taken her over 32 years to pay off her credit cards. Even worse, she would have paid almost $60,000 in interest!
Through a consolidation loan, Jessica found herself in a much better position personally, financially and emotionally. But each person and situation is unique. Securing the loan (for instance with a home-equity loan), will lower your interest cost and save you even more. Or maybe $700 isn't realistic for you and you need to take a bit more time than Jessica. Whatever your situation, we'll work with you to find a solution that meets your budget and your goals and puts you in a better place financially.
Each person and situation is unique. We'll tailor a solution around you and your budget, goals and financial needs:
- competitive rates
- variable or fixed rates
- secured or unsecured options
- no prepayment penalty
- insurance options to protect you
We have a team of the best and brightest who work hard to deliver advice and solutions to empower you financially. We have your best interests at heart because we live and work in the same community as you. We care about you, your dreams and your community.
