A member came in inquiring about an auto loan that she had with us previously. As I was helping her, I noticed she had our Visa credit card so I asked if she currently had any cards elsewhere. She said that she had lots of balances on cards that I knew would be a higher rate than ours so I told her we could help consolidate her debt. The plan was to increase her Visa limit and bring over those balances – she thought it would be a good idea, since most of her payments are going toward the interest charges. We did the application and found that, due to her excellent credit, there was no need for her to have credit cards with such high interest rates and we could consolidate those balances by increasing her Visa limit to $10,000.00. She was so happy!
We paid off those cards, which had an average interest rate of 23.70% and at least $300.00 a month in payments. Her new payment would only be $187.00 and if she wanted to pay extra, it would definitely go right to her principal balance. She was so thankful that we could help her get out of those high credit card interest rates and now her time (and money) can be spent on more important things.