Tag Archives: education

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)

Indirect Lending: Know Before You Go

Have you ever heard the term “Indirect Lending”? If you’re shopping for a new car or truck, and heading to the dealer, it’s a good idea to understand exactly what indirect lending is, and how it can affect your purchase. Our Lending Supervisor, Callie Gibbs answers a couple of questions about this common dealer lending practice and gives some tips on what you may want to watch out for…

Q. What is Indirect Lending?
A. Indirect lending means that the dealer finds your financing for you. Your general application information is sent to several different credit unions for approval. This can mean several inquiries on your credit report, as well as your personal information in the hands of several institutions. The financial institution that ends up “buying” your loan then pays the dealer for that loan; generally, 2% or more of the loan amount.

Q. How does Indirect Lending differ from lending at USAgencies?
A. At USACU, we already know you. We will decision your loan request based on you, not just the numbers. Our loan officers can give you information about what to look for when shopping, the best rates available to you. We will also advise you on the amount to spend so that you don’t get in over your head and have buyer’s remorse. Your credit union doesn’t feel we should have to buy your loan; we want to earn your loan.

Q. What kinds of things should you watch out for with Indirect Lending?
A. The biggest concern with indirect lending is that the dealer is allowed to add on thousands in products. This can sometimes cause you to finance 130% or more of the value of the car.

Q. What’s better than Indirect Lending?
A. A USACU AutoCheck! With an AutoCheck, you’ll know how much you are approved for before you start shopping, so you won’t overspend, you’ll know the book value of the vehicle you’re looking for so you’ll be sure that you’re getting a good deal, and you’ll avoid sitting in a chair at the dealer for hours dealing with the “dealer finance guy” that your salesperson has to keep checking with. You just make the deal, complete and sign the AutoCheck, and drive off- it’s that easy! Basically, it will save you time and money… and who doesn’t want more of that?



For more Q & A with Callie, you can contact her directly:

Callie Gibbs, Lending Supervisor, USACU

Callie Gibbs
Lending Supervisor
Certified Financial Counselor
cgibbs@usacu.org
(503) 275-0312

 

Saving for Your Child’s Education Without Going Broke

The cost of higher education seems to spiral upward every year. Here’s what you need to do to be financially prepared when your child heads to college.

Start early
The average cost of earning a four-year degree could top $205,000 by 2030, according to some estimates. Amassing that kind of cash takes time, so it’s important to begin saving as early as possible, perhaps even right after each child’s birth. The combination of consistent saving, compound interest and investment returns can add up to significant growth over the years.

Explore options
While any investment can be earmarked for college expenses, some savings accounts are designed for this purpose and can provide tax advantages as well:

529 plans
Run by states or schools, 529 plans like the Oregon College Savings Plan let you save for a kid’s college costs with the money’s earnings growing tax-free. While there’s no deduction from federal taxes for contributions, that benefit is fully or partially provided by many states. There are no income or contribution limits, but the money has to be used for a designated beneficiary’s education expenses. Also, gift taxes may apply if you contribute more than $14,000, including any other gifts, to the recipient in a given year.

Coverdell Education Savings Accounts
Formerly known as Education IRAs, Coverdell Education Savings Accounts are trust funds that pay qualifying education expenses for a designated beneficiary. Contribute up to $2,000 annually until the beneficiary turns 18, then use all funds for education before the child reaches 30 years and 30 days old.

Contributions aren’t tax-deductible, but interest and returns earned are tax-free as long as the money is used for qualified educational expenses. To be eligible, your taxable income must be under $110,000, or $220,000 for those filing jointly.

Invest by age
Saving for college parallels retirement planning in that an aggressive investment portfolio, weighted with growth stocks, is recommended during early years with a shift to more conservative assets such as municipal bonds as the time approaches to start withdrawals. Start with equity and stock index funds and begin to adjust the mix once your child turns 9 by putting new contributions into less volatile things like muni bond funds. At 14, begin moving the money out of equities to beef up bond holdings, and aim to be completely out of stocks and equity funds by the time your child starts college.

Better late than never
Saving from an early age is best, but what if you missed that chance? These strategies can help you catch up:

  • To reduce costs, consider enrolling your child in a community college for the freshman and sophomore years
  • Explore available grants and scholarships
  • Keep adding to 529 plans after college expenses start
  • Have your child check out work-study and part-time campus jobs
  • Federal student loans can provide more favorable rates than private lenders

Further stretch your dollars by taking advantage of education tax credits. To avoid being disqualified, pay the first $4,000 of qualified college expense out of pocket before tapping into 529 funds.

With today’s tuition costs, a gap often remains even for those who’ve had a savvy saving and investing strategy coupled with scholarships and federal loans. If you don’t have enough for tuition, check out programs offered by financial institutions and private lenders like Sallie Mae. Look for loans that don’t have application or disbursement fees. Some institutions, like USAgencies Credit Union, participate in loan programs that have competitive rates, flexible payment terms and don’t charge prepayment fees.

With a little planning, research and creativity, your child can earn that diploma while you keep your financial health intact.

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If you have questions about navigating the student loan process, USAgencies can help. Give us a call (503-275-0300), shoot us an email, or just stop by. We’d love to talk!

(Oh, and Oregon residents… we should also mention the Oregon Promise. It’s a great resource for certain Oregon students planning to attend community college.)

 

Claim Your Financial Independence

with a comprehensive toolkit

Whether you have a student headed off on their own this year or you yourself are venturing into the wide world, you’ll find this toolkit includes everything needed to prepare your finances for the changes ahead.

View the toolkit and get started with claiming your financial independence.