When looking to save money, most begin by reviewing their current monthly budget and expenses. But limiting dinners out or cutting the cord on cable only nets you so much in savings. One of the most significant ways to free up extra money is by reviewing your current loans.
After all, loan payments likely make up your largest monthly expenses, why shouldn’t they provide the greatest savings as well? They can. And you can do it through an Annual Loan Review.
How It Works?
Simply call the credit union to schedule a time to review all your outstanding loans. These do not have to be loans with the credit union. In fact, the greatest savings actually come from switching loans from other financial institutions to the credit union.
Once you’ve scheduled your Loan Review at the credit union, gather information on your current loans. Try to find your current loan balance and interest rate – you can usually find this information by logging into your loan or credit card account or through your current loan payment coupons.
When you meet with us for your loan review, our team will review all your current loans, including loan types, balances owed and interest rates. We’ll evaluate which loans could save you money by consolidating, refinancing or switching to the credit union.
Ways to Save
When performing a Loan Review, our team is looking to save you money through two main options:
Refinancing
Whether rates have come down since you originally financed your loan or your credit score improved, taking advantage of lower rates by switching loans to the credit union will decrease the amount of interest you pay. You may also be able to extend loan terms (length of your loan) to further reduce monthly payments if you’re experiencing financial hardships.
Consolidating
The credit union may also help you find additional savings by consolidating different loans and credit cards. For example, if you have several credit cards and loans with high interest rates and different payment dates, consolidating all the loans and credit cards into one loan could net significant savings. Plus, you will only have one, manageable monthly payment going forward instead of several.
Debt consolidation can also help you pay off debts, such as credit cards, quicker by consolidating into a Personal Loan. With set repayment terms, Personal Loans will shorten your repayment period versus making minimum monthly payments on credit cards.
The Perks of a Loan Review
You should plan to schedule your Loan Review annually with the credit union. By reviewing your loan expenses annually, we’ll help you keep an eye on any interest rate changes or identify if there are any new loan products than may be beneficial to your current financial situation. In addition, a Loan Review gives you the opportunity to analyze your saving strategies so you can build on your wealth and effectively plan for the future.
Having the credit union help you with your loans and credit cards also allows you to tap into our financial and investment knowledge as well as loan options if you are experiencing an emergency or looking for ways to pay for other unexpected expenses.
We’re Here to Help!
If you currently have loans financed at other financial institutions, it might be worth scheduling a Loan Review at the credit union. Saving money on loans can lead to significant financial savings, not only in the short-term, but long-term as well.
Stop by our office or give us a call at 800-410-0501 to schedule your Loan Review today.
Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.
12/11/19