Try Consolidating Your Payments

Nobody ever intends to get in over their head with debt, but it happens. And when it does happen, the best strategy is to be as proactive as possible and protect your credit score. So talk to your lenders before you miss any payments. Determine what options are available to you, such as consolidation loans.

Loan Consolidation Options

Consolidate Debt in a Home Equity Loan

If you have enough available equity in your home and are looking to consolidate more than $25,000, you might want to consider a home equity loan. You borrow against the available home equity you have and receive cash to pay off your debt, at interest rates well below credit cards’.

Consolidate Debt With a Vehicle Title Loan

Vehicle Title Loans work like Home Equity Loans, except with your car. You borrow back a percentage of your car's value, and then use the money to pay off other debt. Your car has to be a newer model and you must owe less than its value. But our interest rates often beat credit cards’ by a lot!

Rebuild Your Credit With a Secured Loan

If you allow your debt to get the better of you, it can wreak havoc on your credit score. Rebuild that score with a secured loan from CUTX. Use your savings account or CD as collateral. The accounts are frozen while you use the funds, but released when you repay the loan.

Help With Managing Your Budget

People often struggle to turn their finances around because they see sticking to a budget and avoiding credit cards as a punishment for failing, rather than a challenge to succeed. When getting out of debt, it helps to see it as a quest to regain control and reach toward your dreams.

A Checking Account That Rewards You

Secure and Secure Plus Checking accounts let you budget better, and never miss a payment, by scheduling bill payments up to a year ahead. Plus they offer extras that can save you money, like cell phone insurance, extended warranties, loan payment discounts, and credit score monitoring.

This Debit Card Helps Watch Your Money

CUTX Debit Mastercards offer extended warranties, price protection and more that helps you save money. Moreover, with text alerts about transactions and potential fraud, you stay tuned in to what’s in your account, and when money is going out. Earn extra rewards if you have a Secure or Secure Plus Checking.

Savings Accounts: A Big Part of Money Management

Frequently, people wind up in trouble because they didn’t save for what we call “unexpected expenses,” but that we know will crop up. Like car trouble, or an emergency room bill. Our savings accounts let you set something aside for those moments, and earn money while you do so.

FAQs - Managing Debt

There are several levels to debt. The first is when you have too much, but you’re managing it. CUTX is of the most help there, with loan consolidations including home equity loans or personal loans. Once you’ve missed payments, it gets harder to extend credit. And once you’re behind on several accounts, the best solution is to start with a non-profit Consumer Credit Counseling agency certified by an organization like the National Foundation for Credit Counseling

Many companies that call themselves debt consolidators actually wait until your creditors have charged off your debt and then they pay them a fraction of what you owe. This destroys your credit rating. And they charge a lot for this service. Instead, work with a reputable agency. A red flag is if a company charges exorbitant interest or promises that your credit score will hit a certain number. Since they can't guarantee that, chances are it's not a safe company.

Whatever course you choose to tackle debt, the important thing is to get your spending under control. Whether you switch credit cards or get a home equity loan is less important than what your new interest rate will be and whether you can pay the loan on time. It may be time for a thorough inspection of what you pay every month and where you can cut back.

There are many strategies for managing debt that range from getting rid of unused subscriptions to finding less expensive living quarters. The first step is to build a realistic budget based on where your money goes today and figure out where you can make cuts. Several free budgeting softwares online can help you do this. Then work with an expert to create your own plan to become debt free.