Tag Archives: debt consolidation loan

How Do I Give Myself an End-of-Year Financial Review?

Q: With 2020 drawing to a close, I’d love to give myself an end-of-year financial review before it goes.  Where do I begin?

A: Giving yourself an end-of-year financial review is a wonderful way to check on the progress you’ve made toward your goals, highlight areas needing improvement and update your accounts, funds and investments. Here’s all you need to know about this important end-of-year ritual.

Step 1: Review all your debts and create a payoff plan

Take a few minutes to list all your debts and their interest rates. Have you made any real progress toward paying them off this year? Or have you stuck with minimal payments each month, leaving the actual balance to pile up since you’re mostly just paying for interest?

If your debt needs some help, you have two primary options for how to proceed:

  • The avalanche method. Focus on paying off the debt with the highest interest rate first, and then continue to the debt with the second-highest interest rate. Move through the list until you’ve paid off all debts.
  • The snowball method. Work your way through your debts, starting with the lowest-balance debt. Then, once it’s paid off, apply the payment that was previously committed to that debt to your new lowest debt. Repeat through the rest until all debts are paid off.

For both methods, be sure to pay the minimum balance on all your other debts each month. Try to boost your income and/or trim your monthly spending for extra cash and use it toward the first debt you are paying off completely.

Use our free Money Management tool in Online and Mobile Banking to prioritize your debts and pay it down faster so you can save the money you would otherwise spend on interest. With the information provided in this tool, it will calculate the pay-off dates, and shows how long it will take to completely be out of debt. The tool also includes the Debt Snowball Strategy that helps you pay off your debts faster.

Step 2: Automate your savings

Review your savings from 2020. Have you reached your goals? Have you forgotten to put money into savings each month?

Going forward, make it easy by automating your savings. Give us a call at to set up an automatic monthly transfer from your checking account to your savings account. You can also easily set this up through our online and mobile banking. This way, you’ll never forget to put money into savings again.

Step 3: Review the progress you have (or haven’t) made on financial goals

Have you made measurable progress toward your financial goals in 2020?

Take a few minutes to review your past goals, taking note of your progress and determining how you can move toward achieving them.

Step 4: Review your retirement account(s) and investments

As you work through this crucial step, be sure to review the following variables:

  • Your employer’s matching contributions. Are you taking advantage of this free money, or leaving some of it on the table?
  • The maximum IRA contribution limits for 2021. You will likely need to make adjustments for the coming year.
  • Management fees and expense ratios for your investments. Fees should ideally be less than 0.1%.
  • Your stock/bond ratio and investing style. You may want to take more risks in 2021 or decide to play it safer this year.
  • Your portfolio’s balance. Does it need adjusting?

Step 5: Create an ICE Binder

The events of 2020 underscored the importance of making plans in case one becomes incapacitated for any reason. Create an In-Case-of-Emergency (ICE) Binder to hold all your important documents in one place in case the unthinkable happens. Because of the sensitive nature of the information it holds, be sure to keep this in a safe place where it will not fall into the hands of identity thieves.

Include the following in your binder:

  • Medical information
  • Account information
  • Child care and pet care details
  • Online accounts and passwords
  • Insurance policy documentation and details
  • Investment accounts and details
  • A copy of your life insurance policy
  • A copy of your living will
  • A copy of your last will and testament

Step 6: Set new financial goals for 2021

As you finish reviewing your financial progress of the past year, look forward to accomplishing greater financial goals in the coming year.

A great way to turn dreams into reality is to set goals that are SMART:
Specific
Measurable
Attainable
Realistic
Timely

Here are some goals you may want to set for the coming year:

  • Create a monthly budget before January. Be sure to include all expense categories. Review on the first of each month and tweak as necessary.
  • Review the week’s spending with your partner each Friday night.
  • Pay off your largest credit card bill by 2022.
  • Start a vacation fund in February.
  • Cut out two subscriptions you don’t really use by mid-year.
  • Slash your weekly grocery bill by 10% before May.

Wishing you a financially healthy New Year!


Is it time to slash your post-holiday debt and give your budget a breath of fresh air? Our Debt Consolidation loan offers you that chance. Connect with our Loan Specialist today at 503-275-0300 or email loans@usacu.org today.

Help! I Overspent On Christmas!

It’s so easy to go overboard on Christmas. If you have kids, you want everything to be perfect for them. You want to build priceless memories, so spending any amount seems worth it. Giving extravagant gifts to your family members seems like a great idea … until you’re staring at a huge credit card bill in January.

However it happened, it’s important to approach this problem rationally. Constantly blaming yourself won’t fix the problem. The important part now is to right yourself financially. You can’t take back gifts and return them at this point. You have to deal with the situation that’s in front of you.

Fortunately, you’re not alone. USAgencies Credit Union is here to help. Check out these four ways you can patch up your finances and have things right before summer.

1. Budgeting advice
It can be very tempting to make only the minimum payments on the credit card you used to buy Christmas. Unfortunately, it’s also the best way to ensure you’re in debt for all the Christmases from here on out.

Making minimum payments on credit cards prolongs the length of time you’re in debt. It also makes the total amount you pay for your debt skyrocket. Making just the minimum payment adds an extra $175 to a $10,000 balance at 21% APR.

What you need is an aggressive debt repayment plan. The question you should be asking yourself isn’t, “What’s the least I can pay on this debt?” Instead, identify the most you can afford to pay.

Making an extreme budget is usually not a good choice, but in this case, it’s essential until you get yourself out from under that holiday-fueled debt. Make some sacrifices and get ready to tighten your belt for a little while. Yeah, coming up with an extra $35 or $50 a month is tough, but it’s the easiest way to get things moving.

2. Refinancing major purchases
If you went overboard on one or two major purchases, like a car for a teen, it may not be credit card debt you need help overcoming. Slick dealers offer crazy-sounding incentives like zero down and 0% financing on cars to entice people to give cars for Christmas. Unfortunately, once you’ve signed on the dotted line, you may see you’re in for more than you can handle with a car payment.

USAgencies Credit Union can help. Our auto and other major purchase loans often feature rates that are better than those of dealerships. You may need to finance over a longer term to manage the monthly expenses, or you may just need to restructure to pay less now. Either way, you’ll find more favorable and flexible terms with us than you will at the dealer.

3. Financial counseling
Does reading those credit card statements fill you with a dizzying sense of despair? USAgencies Credit Union can help you make sense of them.

Make an appointment to speak with our Certified Financial Counselor. You’ll gain a better understanding of your rights and responsibilities. You can also come up with a realistic plan to pay off your debt and avoid falling into the same trap next year.

4. Personal loans
Instead of making dozens of minimum payments, wouldn’t it be nice to focus your debt into one manageable plan? A debt consolidation loan can do just that. Best of all, it can save you money in the long run by lowering your interest rate and monthly payment commitment. Rather than paying a credit card APR, you can get the lower fixed rate on a personal loan. Our loan specialists can help you organize and simplify your payments, working toward a debt-free life.


Is it time to buckle down your post-holiday debt and give your budget a breath of fresh air? Our Debt Consolidation loan offers you that chance. Connect with our Loan Specialist today at 503-275-0300 Option 2 to get started.

Debt Consolidation Loans

What is a Debt Consolidation Loan?

In general, a debt consolidation loan can be defined as a loan that combines multiple debt obligations into one single loan. These loans tend to have lower interest rates than many existing debts. They also allow the borrowers to make only one payment per month instead of many.

Advantages

  • Pays off high-interest credit cards or other debts with low-interest loans
  • One easy monthly payment to make
  • A closed-end loan will result in a set payment schedule
  • May result in lower overall monthly payments
  • Establishes good credit history, if paid back as agreed

Things to be Prepared For

  • Some type of collateral may be required before approval
  • A co-signer on the loan may be required before approval
  • Credit score will be a significant factor

As you can see, there are some important factors to consider. If you are struggling with high credit card debt, you first must strive to change your spending habits and learn to live within your means. Setting a budget is the first step, and with Money Management you can know your accounts, track your budget, and watch your spending all  in one place.

It doesn’t make a lot of sense to consider a debt consolidation loan if you will be continuing to incur monthly balances on your credit cards. In the long run, you will end up having a higher overall debt balance if your spending behavior does not change.


Is it time to tackle your post-holiday debt and give your budget a breath of fresh air? Our Debt Consolidation loan offers you that chance. Connect with our Loan Specialist today at 503-275-0300 Option 2 to apply today. 

7 Reasons to Consider Consolidation

A brand-new year often inspires positive life changes, such as breaking free of debt. One way to help eliminate debt is by consolidating it into a lower interest rate loan, like USACU’s Slim-Down loan, for example.

Here are 7 reasons you might want to consider a loan consolidation:

  1. Save $$. By consolidating higher interest debt (like credit cards) with a lower interest rate loan, you could potentially save hundreds of dollars over the life of your loan. Wait, hundreds? Yes, hundreds! That’s at least worth looking into right?
  2. Save even more $$! Shave 2% off USACU’s already-low consolidation loan rates when you apply for our Slim-Down loan before February 17th. With rates as low as 6.99% APR* and amounts up to $10,000, we make it easy to save even more $$. Plus, for a limited time, there’s no origination fee – even better!
  3. It’s Easy. It couldn’t be more convenient to consolidate debt with help from USACU. Call or click today and we’ll help you get started in just a few quick steps.
  4. One Payment. Instead of several credit card bills and loan statements, you’ll just have to make one loan payment. Easy, right? We like easy.
  5. Pay Debts Faster. A lower interest rate means you could potentially pay your debt down much faster, because you’ll have less debt to pay down overall. Also, with just one payment–instead of multiple minimum payments–you could chip away at that debt by easily making more than the minimum payment each month.
  6. Improve Cash Flow. If your goal is more cash in your wallet at the end of the month, a consolidation loan can help with that too. By making only one payment, instead of several, you could give yourself a bit more of a cash cushion each month.
  7. Prepay and Save. Get a large chunk of cash after you consolidated your debt? Great! You can prepay your loan at any time with us, with no prepayment penalty or fee. Some loans or credit cards charge when you pay off early- USACU won’t.

There are of course many more reasons a consolidation loan might be the right choice for you… these are just a few!

Whatever your aspirations are for the new year–be it debt consolidation, getting a better auto loan rate, or anything in between–know that your credit union is always here to help with education, resources and products to help you reach your financial goals.

*APR=Annual Percentage Rate. Terms and conditions apply. Connect with us for complete details.


Questions?
Contact our lending department:
Local: (503) 275-0300, ext. 2
Toll-free: (800) 452-0915, ext. 2
Email: loans@usacu.org

Ready to apply for a consolidation loan?
Click here (Hint: you want to select “Signature” under “Personal Loans” when applying)