The credit union, still rather new to me because I’ve been using it for the full range of banking services just since March, offers members low-interest loans to consolidate debts. I just noticed that offer on the website on Wednesday & decided to apply. My main remaining credit card has an interest rate of 11.24%, I believe, which isn’t bad in today’s market. But the credit union’s best rate is just 4.99%.
Someone called me that very afternoon from the credit union to tell me that my scores were “perfect,” I qualify for the best rate, & she was going to pass on my application to the underwriter. This morning I faxed over a few paystubs, & just now she called to let me know that the loan is already approved. What she needs now is recent statements from the accounts that I want to consolidate. She will send the payoff checks directly to them.
I’ll be including not only that main credit-card debt but also the remaining small debt for recent & future travel. Then I think there will be a few hundred leftover $$ than I can use to pay down a family student loan I took out 8 years ago to help out my son. That one also has low interest, but not as low as this!
The loan is set up for 24-month payoff. I plan to get it paid off by sometime in 2015, but it’s nice to save $$ AND have some leeway in case there’s some unexpected expense in the coming year. 6 months ago