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Air Force Federal Credit Union Helps You Manage Debt with a Consolidation Advantage Loan

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Posted in Auto Loans, Credit Cards, Articles, Air Force, Credit Unions

San Antonio debt consolidation

It seems to be the same every January: consumers are left with a shopping hangover, characterized by too much money charged on too many credit cards. It can be hard to get the year off on the right financial foot when there are a dozen different credit card payments to make and the balances on each are accruing interest at staggering rates.

With the help Air Force Federal Credit Union (FCU), you can manage credit card debt and start the new year off with a stronger financial foundation. The credit union‘s Consolidation Advantage Loan (CAL) is a debt management solution that can be used to combine bills and outstanding balances into one easy payment. The CAL offers rates as low as 8.50% APR, much lower than most standard credit cards or high interest loans, to help you save money and pay off debt faster.

How Air Force FCU’s Consolidation Advantage Loan Works

The concept behind the CAL is simple: you take out one loan from Air Force FCU and use the funds from this loan to pay off existing high interest debt, such as credit cards or payday loans. This allows you to replace various high interest rates with a single interest rate as low as 8.50% APR and helps you to save time and money by having only one manageable payment.

The Consolidation Advantage Loan offers many benefits to members of Air Force FCU:

  • Savings from a lower interest rate: with a much lower interest rate, the loan will accrue dramatically lower interest charges over the life of the loan — meaning more money in your pocket.
  • Ability to pay off debt faster: with high-interest loans, the minimum payment may not even cover the interest a loan accrues. With a lower interest rate, you can stay ahead of accruing interest and make a big dent in your debt.
  • A single, easy-to-make payment, rather than multiple payments that can be hard to keep track of. You’re less likely to miss a payment and get hit with late fees, or a lowered credit score.
If you think a consolidation loan could help you manage your debt, contact Air Force Federal Credit Union to find out more and begin the application process.

 

Will a Consolidation Loan Affect My Credit Score?

Some consumers may worry that a consolidation loan may negatively impact their credit score. It is recommended that borrowers with a consolidation loan use funds to pay off and then close multiple lines of credit. Closing multiple lines of credit may cause a temporary dip in a consumer’s credit score.

However, if you are in need of a consolidation loan, your current credit situation may already be causing your credit score to decline. A consolidation loan will have little impact on your score if:

  • The balances on multiple credit cards are near the limit
  • You are missing payments or making late payments
  • You have collection items on your credit report
In some cases, the Consolidation Advantage Loan from Air Force FCU can actually help you improve your credit score by helping you pay off outstanding balances and get payments back to a manageable dollar amount.

 

About Air Force Federal Credit Union

Chartered in 1952, Air Force Federal Credit Union is a not-for-profit financial institution in San Antonio, TX offering financial products and services crafted in the interest of their members’ financial well-being and future stability. An array of deposit accounts, loan options and helpful financial tools are accessible to members. The San Antonio credit union currently serves the financial needs of nearly 37,000 members worldwide with the strength of more than $350 million in assets.