When it comes to saving money, we often think of cutting back on our everyday expenses. Less dinners out, renting movies instead of going to the movies, or lowering our cell phone bills. But did you know one of the best ways to free up significant funds is by looking at the loans you pay each month?
It’s true. Your loan payments, whether home loans, credit cards or car payments, usually make up the largest expenses you pay each month. And they often provide the greatest opportunities to save big each month.
Save on Your Current Loans
When you think of saving on your current loans, you’re probably thinking of getting a lower rate. While your rate definitely impacts your monthly payment, there are many ways to save big without ever changing your rate.
Loan Terms: The length of time you have to repay your loan greatly impacts your monthly payment. The longer the term, the lower the monthly payment and vice versa. Extending the payment does cause you pay more interest over the life of the loan. However, if you are in need of more funds now, it does provide a way to lower your monthly payments immediately.
Note: There are some restrictions on extending loan terms for different types of loans.
Loan Type: Unsecured Loans (those without collateral, i.e. credit cards and personal loans) often have higher interest rates because they carry more risk for the lender. However, you may have the option to switch your unsecured loan to a secured loan if you put something up as collateral (i.e. your vehicle). This will allow you to qualify for the lower rates of a secured loan.
Consolidate Loans: You may have several different loans that you are able to consolidate into one single loan. For example, you could take several high-interest credit cards and consolidate them into a Personal Loan. This helps eliminate the excess interest you pay on high-interest credit cards and provides you with a single, manageable monthly payment.
In addition to the example above, you also have the option of a Home Equity Loan. This type of loan allows you to use the equity in your home to consolidate high-interest loans into a single, lower-rate loan. Home Equity Loans also typically have longer repayment terms; helping to further lower your monthly payments.
Let’s Get Saving
At Tampa Postal, we have a very unique Loan Program designed specifically get to you approved and help you save money. Other financial institutions rely primarily on your credit report when approving loans. We have our own system that reviews over 30 factors when approving loans.
- Our program allows us to approve more loans; especially for members who don’t have perfect credit.
- Our Loan Officers have special training to help you find ways to save money on your current loans.
- You will also receive personalized tips to help you boost your credit score.
Schedule Your Loan Review
Stop by any branch location or give us a call at 813.264.4969 | 800.782.4899 to schedule your Free Loan Review today. You may just find the extra money you’ve been looking for, plus more!
This article is for educational purposes only. Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed.