Benefit from a Consolidation Loan
Mention the word “holidays” and immediately you think of good food, good friends and many family traditions. But you may also think of those holiday charges recently appearing on your credit card statements. Maybe you saved up for these expected expenses but if you’re like me (and most consumers) you ended up over budget and it’s time to look at a consolidation loan.
Every year, I head into the holiday season with good intentions and a basic budget in mind. Sometimes I come out ahead but usually I end up over extended. Not really a big surprise when 50% of consumers end up spending more than they planned.
Whether you have a single balance with higher interest rate or multiple payments to manage, consider using the equity in your vehicle or home to secure a consolidation loan with Dane County Credit Union. A home equity loan with DCCU includes no annual fees, no prepayment penalty, and low closing fees. Or perhaps consider a signature personal loan which may offer a lower interest rate with one monthly payment. By combining multiple credit card and other personal loan payments into one monthly payment, managing your monthly bills has never been easier.
Beyond the Minimum
Once you meet with a Dane County Credit Union staff member to discuss your options, the next step is to keep in mind your repayment plan. While submitting the monthly minimum balance requirement is appealing, make an effort to pay a little extra whenever possible. By paying a little more each month, you’re reducing the amount of accrued interest you’ll pay over the life of the loan and save money.
Review Spending Habits
Another important step is taking some time to review your spending this last holiday season. Did you stay fairly close to your goals, or is there room for improvement? Maybe it’s allowing for slightly increased spending overall so you’re not continually ending up over budget. Or perhaps it was a specific area you want to trim back a bit, such as dining out or those pesky impulse purchases. If you recognize a pattern, now is the time to think about how to proceed for next holiday season. Why not open a Holiday Savings account now and be prepared for the next holiday season?