Member Saving Stories

The Art of Consolidating Debt and Savings Members Money…by Hiwot T.

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I followed up with this member after she submitted an online application to convert her Gateway Line of Credit to a Visa Gold Credit Card for additional benefits. While going over her application, I noticed she had two auto loans and additional credit cards that appeared to have high interest rates. After we finished the Visa Gold request, I asked if she knew what her interest rates were on those other loans, and after a few quiet moments she said, “Not good at all.” I told her I would do some calculations to see if we could help her refinance the auto loans, and possibly consolidate the credit cards at a lower interest rate. She liked the idea, but was in hurry to go back to work and promised to call back and let me know how to proceed.

After a couple of weeks, I followed up to remind her of our conversation about refinancing the auto loans, and consolidating the credit cards to help save her money. She agreed to apply, so I submitted the applications and she was quickly approved for both auto loans. For one vehicle, our rate was .74% higher than her current loan, but since she had equity it was an opportunity for her to roll those high rate credit card balances into the loan for one consolidated payment. For the other auto loan, we lowered her rate to 6.74% and her payment decreased substantially. After consolidating her credit cards and refinancing the auto loans, her monthly payments of $1570 were cut almost in half and she is now paying about $800 month…that’s a HUGE savings for her, and another happy member for us!