Hawaii Federal Credit Union: Consolidation Loans


WELCOME BACK. YOU HAVE A CREDIT CARD, A PERSONAL LOAN ON TOP OF THE BILLS YOU PAY EVERY MONTH? Trini: WOULDN’T IT BE NICE TO PAY OFF SOME OF THE SMALLER BILLS? HawaiiUSA FEDERAL CREDIT UNION HAS THE PERFECT SOLUTION. WE’RE HERE AT HawaiiUSA FEDERAL CREDIT UNION IN KALIHI OFF OF WAIAKAMILO STREET. WE’RE TALKING WITH TONY SON, LOAN MANAGER. FOR PEOPLE WHO MAY NOT BE FAMILIAR, WHAT A CONSOLIDATION LOAN? IT’S ONE BIG LOAN WHERE YOU USE IT TO PAY OFF A LOT SMALLER LOANS AND PUT IT ON TO ONE. SO YOU GET ONE LOWER 35EU789. EASIER PAY THAT WAY. Trini: FOR EXAMPLE, IF PEOPLE HAVE DIFFERENT CREDIT CARDS WITH SMALLER DEBT THEN THEY CAN CONSOLIDATE THAT. ESPECIALLY WHEN IT COMES TO CREDIT CARDS. THEY TEND TO HAVE HIGH INTEREST RATE ON THESE. SO WHEN YOU GET A BILL CONSOLIDATION, YOU COMBINE THEM INTO ONE. USUALLY YOU GET A LOWER INTEREST RATE. AND THAT WAY YOU CAN PAY IT OFF A LITTLE QUICKER. AND AT THE SAME TIME, SAVE MONEY. Trini: GREAT. WHICH LEADS ME TO MY NEXT QUESTION. WHAT ARE SOME BENEFITS OF HAVING A CONSOLIDATION LOAN? MAIN BENEFIT, THE INTEREST RATE. USUALLY SHOULD BE LOWER THAN THE CREDIT CARDS. PROVIDED YOU HAVE PRETTY GOOD CREDIT. AND COMBINING IT ON TO ONE AND SET A TERM. LIKE MAYBE FOUR YEARS OR FIVE YEARS. YOU CAN PAY IT OFF. QUICKER THAN IF YOU WERE TO MAKE THOSE SMALL, MINIMUM PAYMENT TO THE CREDIT CARD, WHICH TAKES LONGER. Trini: SO YOU GET A LOWER INTEREST RATE. IT HELPS SOMEONE GET ON THE RIGHT TRACK. ARE THERE ANY DISADVANTAGES TO HAVING A CONSOLIDATION LOAN? THERE IS SOME POTENTIAL DISADVANTAGES. DEPENDS ON YOUR CREDIT. IF YOUR CREDIT IS NOT TOO GOOD, SOMETIMES YOUR RATE IS NOT GOING TO BE LOWER. AND BY COMBINING IT INTO ONE AND STRETCHING IT FOUR LONGER TERM, BECAUSE THE GOAL IS BRING THE PAYMENT DOWN. IF YOU STRETCH IT, YOU END UP PAYING MORE INTEREST. IT COMES DOWN TO WHAT INTEREST RATE YOU WOULD GET TO DO THAT CONSOLIDATION LOAN. Trini: A CONSOLIDATION LOAN MAY NOT BE RIGHT FOR EVERYBODY. YES. IT MAY NOT BE RIGHT FOR EVERYBODY. FOR THE MOST PART, YOU SHOULD LOOK INTO IT. ESPECIALLY ONCE YOU START HAVING A LOT OF CREDIT CARD DEBT. CREDIT CARD INTEREST RATE IS A LOT HIGHER. Trini: WHAT HELPS THEM DECIDE IF IT’S RIGHT FOR THEM? THE BEST WAY TO DO IS GATHER ALL YOUR LOANS, YOUR STATEMENTS, AND LOOK AT WHAT INTEREST RATE YOU’RE PAYING. AND THEN NEXT STEP IS GO TO YOUR LOCAL BANK OR YOUR CREDIT UNION. AND SIT DOWN WITH A LOAN OFFICER SO THEY CAN ANALYZE ALL THE BILLS THAT YOU HAVE. AND SEE WHAT WOULD YOU QUALIFY. IF YOU WERE TO COMBINE AND HOW MUCH WOULD YOU SAVE IF YOU WERE TO COMBINE THEM TO ONE. Trini: TELL US ABOUT YOUR CREDIT UNION. WHO CAN BE A MEMBER? ANYBODY WHO LIVES OR WORKS ON OAHU CAN BECOME A MEMBER. ANYBODY ON OAHU. Trini: GREAT. AND IT HAS A NICE, CENTRAL LOCATION. VERY CONVENIENT. YES. ABSOLUTELY. IN THE HEART OF TOWN. WE HAVE SHARE BRANCHES. EVEN THOUGH WE HAVE ONE LOCATION HERE, MEMBERS CAN GO TO OTHER SHARE BRANCHES TO DO TRANSACTIONSES. Trini: TODAY WE’RE FOCUSING ON CONSOLIDATION LOANS BUT YOU DO OFFER OTHER TYPES OF LOAN. WE DO HOME EQUITY LOAN, CREDIT CARD AUTO LOAN AND MORTGAGES. Trini: THANK YOU SO MUCH. THANK YOU. Trini: AGAIN IT’S HawaiiUSA FEDERAL CREDIT UNION IN KALIHI. VERY HELPFUL. THIS IS HELP A LOT OF PEOPLE. John: YEAH. Trini: SOMETIMES IT’S SO OVERWHELMING. YOU’VE GOT DIFFERENT DR DUE DATES. PACKAGE IT INTO ONE LOAN. John: AND THEY’VE GOT ALL OPTIONS. Trini: YEAH. COMING UP AFTER THE BREAK, WE’RE

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