Student loans are among the largest and most challenging kinds of debt that most people face. Although many people come out of school with tens of thousands of dollars in debt—and some people who pursued medical or law degrees facing hundreds of thousands of dollars in repayments—it is possible to tackle your debt without postponing the rest of your financial growth. Your credit union can be a great source of information in that regard, so be sure to use the services that they provide. This advice will also help.
Understand Your Loans
For many people, student loan debt trouble starts with not truly understanding their loans. Over the course of a college career, loans can be moved from lender to lender many times, and there may be several small loans from different lenders that make it difficult to understand what you owe and who you need to pay. Take a moment to be sure that you truly understand all of your loans and that they are all accounted for as you consider repayment terms.
Ask Your Employer
Some employers offer student loan forgiveness plans or assistance with loan repayments, so ask what is available to you. In some cases, you can choose a job that comes with substantial loan forgiveness. For example, some states offer loan forgiveness after a certain window of time making payments, if you work in public service.
Sign Up for Auto Payments
Enrolling in an auto payment program on your loan will usually allow you to get a lower interest rate. Although the reduction in rate will usually be modest, it can add up to a significant amount of money over time, which will help you pay off your debt faster. Plus, you’ll never need to worry about missing a payment.
Find out more about smart financial strategies by scheduling an appointment with a team member at GCS Credit Union. We’re here to serve our members, not profit off of them, and we’re invested in your financial success. You can learn more about joining our credit union in O’Fallon by calling (618) 797-7993.
If you’re considering making a large purchase, a personal loan could help you finance the expense. These kinds of loans are installment loans, which means that you will receive a lump sum and then repay it through monthly payments, until you have completely paid it off. Unlike auto loans or home mortgages, personal loans aren’t for anything in particular, and you can generally use them for anything. However, as with any kind of loan or credit you get, it is important to consider the terms and your ability to pay it back before signing for a personal loan. Is a personal loan right for you? These are some of the signs that you should consider getting one.
You have high-interest debt that you want to consolidate.
If you have high balances on credit cards, a personal loan could be a good solution to get your bills under control. Most personal loans have lower interest rates than credit cards, so by getting a loan to pay off all of your credit card balances, you can save a significant amount of money on interest expenses. If you’re paying on multiple cards, then consolidating your debt in this way will also streamline the process of paying off your cards, since you’ll only have to make a single payment going forward. However, resist the urge to drive your balances back up once you zero out your credit cards.
You’re planning a home improvement project.
Home improvement projects can be great investments, since they can add value to your home. However, financing them sometimes means running up big credit card bills with high interest rates or borrowing against your home. A personal loan allows you to avoid these scenarios and pay for your project with an unsecured loan with lower rates than your credit cards.
You have considered how to repay it.
In order to stay in control of your finances, avoid borrowing any money you haven’t made a plan to repay. Be sure you understand the terms of the loan up front, so that you can plan for repayment accordingly.
If you’re interested in applying for a personal loan, contact GCS Credit Union. We offer competitive rates and can help you find the best loan for your needs. Call our credit union in O’Fallon today at (618) 797-7993.
If you’re in need of money and don’t have enough in your checking account or savings account, you should consider taking out a personal loan from your local credit union. Credit unions are able to offer incredibly competitive interest rates and low fees on personal loans.
Watch this video to learn some important facts about personal loans. Matt McKillen, a financial specialist, discusses your personal loan options, and what to consider before taking one out.
At GCS Credit Union, our credit union in O’Fallon offers great rates on personal loans, lines of credit, auto loans, and home mortgage loans. Our loans are available in a wide range of customizable terms that can be designed to meet your personal financial needs. To learn more about our loan services, call us today at (618) 797-7993.
Although it is not always preferred, borrowing money makes sense in many different cases. Before heading to your credit union to apply for a personal loan, it is a good idea to think about what you might use it for. Keep reading to see how you can reap the benefits of a personal loan.
Getting Out of Debt
A personal loan can be extremely helpful when it comes to getting out of debt. Living in debt can be crippling; it can prevent you from getting favorable interest rates or even qualifying for loans, and it can make it difficult to keep food on the table while paying off your lenders. Fortunately a personal loan can help you break free from your debt. Since these loans typically feature fixed repayment periods, you can rest assured that you will be debt-free once you have finished your monthly payments.
Improving Your Credit Score
Your credit score is important for a number of reasons, and it is often used to determine the interest rates that a lender can offer you. Incurring more and more debt and making late payments can hurt your credit score, which can then leave you with little flexibility when it comes to interest rates on loans. A low credit score may even keep you from obtaining a mortgage. You can use your personal loan to build your credit by making your payments on time.
Saving Your Funds
There are plenty of ways a personal loan can help you save money in the long run, but what can it do for you in the short term? You might be able to refinance a steep interest rate using your personal loan, allowing you to pay a smaller total and still end up with zero debt.
If you would like to learn more about what you can do with a personal loan, call GCS Credit Union at (618) 797-7993. Our credit union in O’Fallon specializes in a multitude of services from auto and home mortgage loans to online banking and bill paying. Visit our website to learn more about us.