I was assisting this member with her auto pre-approval request and we were discussing how her last kid was off to college, which was exciting but a bit sad because her kids are all grown up now. She showed me a picture of her beautiful family, and was telling me how happy her life was at the moment, but she bought a car she didn’t like and was hoping to trade it in for a better one. While reviewing her auto loan application, I noticed she had quite a bit of unsecured debt and she said she was hoping to get caught up soon but it would take her a while to pay it off. She owned her home, so I asked if she had ever considered doing an Equity loan to consolidate all her debt into one payment. She was not sure about using her home as collateral, so I told her about the benefits of getting an Equity loan.
We calculated all of her minimum payments, which came out to about $1,100 a month! I knew with an Equity loan she would most likely pay less than half of that each month, and her credit score would give her a good rate. We finished up her auto loan, which was approved right away, and I asked if she had any other questions. She said no, and she was going to go home and think about the equity loan so I gave her some literature to read. The very next day she came in and wanted to apply for the Equity loan! She said she didn’t really need a new car, and she would rather work on getting out of debt. She was so happy I suggested this option to her because she had never thought about improving her financial situation. We were able to give her a $45,000 Equity loan to pay off ALL her debt only pay $385 a month – that’s WAY less than half of what she was paying! She can now breathe easy, with peace of mind that all of that high rate debt has been taken care of and she has more money in her pockets.