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Share Certificate Secured Loan
Would you like to payoff a high interest, high balance credit card with a lower interest loan from TobyFCU and STILL have the same amount of money of that high balance credit card in a savings or certificate account after paying off the credit card? How is that possible? If you have an existing share certificate with TobyFCU, or you open one with funds available to you, you can borrow against that share certificate at a rate of only 1% above the dividend rate on that share certificate. You just need to make sure that the term of the share certificate is at least the same term as the maturity of the loan, or longer. Here is an example:
| Credit Card Balance = $10,000 |
Share Certificate = $10,000 |
| Credit Card interest rate = 9.99% |
Share Certificate Rate = 3% |
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Share Certificate secured loan = $10,000 |
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Share Certificate secured loan rate = 4% (Share Certificate dividend rate of 3% plus 1%.) |
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Payoff the credit card balance of $10,000 at the 9.99% rate with the Share Certificate secured loan at a 4% rate. Your share certificate CONTINUES to earn at a 3% rate. |
When the Share Certificate secured loan is paid off, you STILL have that $10,000 in your share certificate PLUS the dividends accumulated and earned. AND you no longer have that credit card debt. In essence, you pay YOURSELF back to get out of credit card debt.
Apply Now and Start Saving Money!
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