This may be your best tool to simplify your financial life. A debt consolidation loan can reduce the number of creditors, bills, and monthly payments, and reduce your monthly budget allocation for debt payments. Get out of the shark pool of credit card companies and enjoy “banking without torment” with your sangha. Print out our loan application at the lending page, follow these steps and consider the following questions:
Your current debts? List each debt balance; monthly payment; interest rate; an approaching balloon-payoff due date; and the collateral (if any.) Photocopies of each recent statement (with payment coupons attached) are good, too.
Your monthly budget? Use the form in loan application materials.
Collateral? Offering your auto title will lower your interest rate.
Interest rate is the cost of your credit as a yearly percentage of the loan balance. Finance charge is the dollar amount the interest will cost during the loan repayment. The rate is set based on collateral offered, income history, credit history, completeness of your application documents, our optional borrower’s life insurance, and repayment terms. In general, Ashoka Credit Union rates will be lower than most of your credit card rates, especially if they have trapped you.
Co-signer may be requested if you have a weak or brief income or credit history. This support is easier to find than you might suppose. Family, sangha, even work colleagues are cheered to see you getting help with your finances. Ask those you know have some financial strength of their own, and you will come up with a “yes” pretty quick. Once the loan is signed, the co-signer is out of the loop unless you fall behind on the payments, or when we notify them the loan is paid in full. The borrower’s life insurance is a considerate assurance for a co-signer.
Repayment choices will influence your interest rate. Electronic monthly payments, fully repaid within 4 years get the best rates. For the most budget relief, a minimum-monthly-payment plan will be set at 125% of interest only, plus the borrower’s insurance premium (single-insured rate is $.08 per $1000 outstanding). These minimum-payment loans are helpful if you are expecting your income to come irregularly and want to pay down the loan in chunks. The balance will be due at the balloon pay-off date, and sometimes can be refinanced for another 3 – 4 years of payments, as necessary. There is no penalty for early payment.
Loan approval usually takes 24 hours once the application is complete.
The Loan agreement will gather original signatures and the title to your collateral, sometimes by mail if you or your co-signer are out of the Boulder area. You will also be asked to provide copies of the card statements with coupons for each debt to be paid from your new loan, so please photocopy them for that event.
Loan checks are written to the card/debt companies on your behalf after all signed documents are in. Do not discontinue debt payments until you know your debts have been paid by Ashoka CU.
Questions? Call or Email today. You deserve peace of mind about your money!