How to Lower Monthly Debt Payments

posted in: Blog, Financial Tips 0

The day that paycheck comes in is the best day.  Unfortunately for many people, a lot of that income that we’ve worked hard for goes straight to our debt repayment.  

Are you struggling to pay your monthly payments? There are some options to lower those monthly payments and help you get on top of your finances.  Do some digging and find the best options for you, or better yet, come see us and find out how we can help!  Here are a few ways that could help to lower your monthly debt payments.

 

Consolidate your Loans

The term consolidation can be a little intimidating, we get it!  Basically, loan consolidation is nothing more than combining all or most of your debt into one loan and making one payment each month as opposed to multiple.  Many people will consolidate their student loans to simplify the repayment process.  It’s important to weigh your options and fully understand the interest rates and pay off timelines before making any decisions.  There are a multitude of consolidation options out there, be sure you are selecting the best fit for you.  

 

Apply for a Lower Interest Rate Loan

This could come in the form of an auto, home equity, or personal loan.  Borrowers who own their own home will often use a home equity loan, for example, to pay off high-interest loans and lower their overall debt payments.  By applying for a lower rate loan, you will pay less money towards interest, and in some cases, pay off your loans much faster.  A home equity loan uses the value of your home as collateral for borrowing.  As always, know which option is best for you.  It could very well be that a personal loan is the best way to pay off your other debts.  Pay particular attention to what you are using the loan for and how much you’ll end up paying at the end of the repayment period.

 

Talk to a Professional

We are all ears!  Talking to a financial professional will give you peace of mind (and of wallet) when making large financial decisions.  A credit union is a great place to go when you’re in need of a financial guide, as they are there to serve their members.  If you’re feeling very financially stretched or are concerned about your credit score, it’s not a bad idea to reach out for some tips on how to move forward.  For some, a loan isn’t the best option and for others, it could be the best way to improve their finances.  All financial choices are dependent on each person’s specific situation.  Let us help you find out what option could be best for you!

To speak with a Member Advisor or find our contact information, visit our website at caminofcu.org!