If you’ve been accumulating a bunch of loans with high interest rates and huge monthly payments, you may be considering consolidating your debts into a single, lower interest rate loan. This takes some of the burden off being able to afford your bills by lowering your monthly payments. >> Read the Amazing Debt Consolidation Show
You may want to consider consulting with Member Services who is equipped with the knowledge to help you reach your goals. But in the mean time, take some time to inform yourself on the different options available to you:
What can you consolidate?
- Credit card debt
- Medical bills
- Student loans
- Payday loans
- Really, any loan for that matter!
Credit Card Balance Transfers
In most cases, a balance transfer offer includes an “introductory period” with a 0% interest rate – usually from 6 to 18 months. This allows you to pay off your entire balance without accruing more interest. West Community now offers balance transfers through Virtual Branch.
Using Your Home to Consolidate Debt:
If you have equity in your home, you may have a few options for debt consolidation:
- Home equity line of credit: a line of credit you can access as needed until you reach your credit limit.
- Home equity loan: a one-time loan secured by your home.
- Refinancing: You could refinance your mortgage into a new loan with better terms and use the excess cash to pay off other debts.
A lot of people don’t know that you can use the equity in your vehicle to consolidate your bills as well. Just a quick conversation with a Member Services Consultant will confirm how much money you’ve been driving around with.
Last year, my husband and I did 2 things: We refinanced his truck and used the equity to pay off 3 credit cards that we had racked up over the years trying to finish our basement simultaneously lowing his truck’s payment by $55 a month (that’s $660 in yearly savings!).
During this time, our furnace & air filtration system in the house broke and had to be replaced (costing us around $9,000!). Hoping the finished basement would boost our home appraisal in time to apply for a Home Equity Line of Credit, we were able to payoff the air filtration system while adding a privacy fence to our backyard for our dogs.
With the several options available, we were able to utilize a couple different consolidation opportunities. Now that you’re familiar with the advantages of debt consolidation, set up an appointment with Member Services and get on the path to lower monthly payments today!