Gain Control With Bill Consolidation

Combining all your payments into one means less hassle and may even lower your payments. For example, if you have balances on department store credit cards, you may be paying as much as 21% interest. That’s why it takes so long to pay off the balances. And that’s why it’s not surprising that other bills begin to accumulate. If you owe $5,000 on a credit card carrying a 21% interest rate, you must make $188 monthly payments for three years in order to pay it off. This assumes you are not making any more purchases! Consolidating your bills with a loan from the Credit Union means a lower interest rate and lower payments. For most members, this means saving a substantial amount in total interest charges. For example, paying off a $5,000 loan at 9.5% interest in three years requires monthly payments of $160; this is a $1008.00 savings in interest charges compared with the $5,000 balance at 21%.

Consolidating your debt can help give you a fresh start. Put the difference in what you’ve been paying on your bills and your payment on your credit union loan into your share savings account. This benefits you in two ways: You have money in savings to help meet future obligations, plus you’ll earn dividends on your shares. The sooner you act the sooner you can begin to gain control over your finances.