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CAN YOU SAVE THOUSANDS WITH A LOAN CONSOLIDATION?
January 12, 2016
With the new year upon us, many have finances in the forefront of their New Year’s resolutions. Is it your goal to save more, pay off debt, or create a better budget?
Regardless of your financial goal, consolidating your loans may help get you that running start. Using a standard payment calculator, a person with 3 credit cards totaling $5,000, all at an interest rate of 10%, paying minimum payments comes to $200 each month. Taking the same loan balance and applying 10% interest to a single $5,000 loan gives a lower payment of approximately $161 for 36 months.
Besides a lower payment what’s the difference? The credit cards would have taken 81 months to pay off vs just 36 months for the personal loan. Even though both balances are financed at the same APR, the overall savings is $10,404!
Loan consolidation can help your short-term budget by paying less, and your long-term budget by saving you hundreds or thousands of dollars in interest. In some cases, you may even find yourself using equity in a home or vehicle to receive an even lower rate to reduce your monthly payments substantially.
For the biggest impact on your New Year’s resolution and wallet, the best time to start is now. Call your loan officer at Central Sunbelt, or visit www.sunbeltfcu.org/apply to get started.