Tonawanda Valley Federal Credit Union offers unique benefits to potential clients around Western New York and the Southern Tier. When you work with a federal credit union, you have unique benefits provided because, technically, you are a shareholder of the credit union. If you didn’t know, Credit unions are not-for-profit cooperatives owned by their members. This means the more members and the more success/profits for the credit union, the more benefits are paid back to members in the form of lower fees, better rates, and higher yields on savings.
One solution that we provide for our new and existing members is debt consolidation loans. Debt consolidation loans offer an opportunity for you to clean up your debt and simplify (and potentially lower) your total monthly payments on outstanding debt. This is a great way to get organized and create a plan to get out of debt.
Today on the blog, we will cover a few signs that it might be the right time to start thinking about talking to TVFCU about a debt consolidation loan.
Sign 1 – You Have High Interest Rates
If you have debt from credit cards, loans, or other past financing, and you are stuck in high interest rates, it might be worth looking into a debt consolidation loan. Carrying balances on credit cards with APRs above 15% can be painful on your budget. A new loan potentially could lock in a significantly lower rate.
Sign 2 – You’re Stuck Making Minimum Payments
If you recognize that you’ve become stuck in a hamster wheel of making minimum payments on multiple credit cards or sources of debt, then you may want to review what rates you can get on a consolidation loan. It could take you a very long time to pay down debt, and you can get crushed by interest if you don’t pay it off in a timely manner.
Even worse, if you’re getting lost tracking multiple different payments from different sources and missing payments, you can hurt your credit. So, making ONE central payment could be a solution for you in that case.
Sign 3 – You Recently Improved Your Financial Situation
If you’ve made some progress and gotten yourself into a better position with your credit, then you may want to explore what types of loans you can switch into that could offer a much more favorable, lower-interest loan.
Similarly, if you improved your debt-to-income (DTI) ratio, you may have more income to cover a new, fixed monthly payment more comfortably. If your work pay increases, or you come into a better financial situation, you might want to look at getting your debt down in a more organized and timely fashion with a consolidation loan.
Are You Interested in Debt Consolidation with TVFCU?
If you’re thinking of exploring debt consolidation and are looking to take control of your finances with ONE central payment, you should get in touch with us! You can always stop at our branch in downtown Batavia at 10 Jefferson Square, or give us a call us at (800) 722-8224 to speak with someone today!
