Life can be expensive, and when the bills are piling up, and debt is growing, it’s sometimes hard to see a way out of your debt. NZCU Employees is a Credit Union based in Penrose, and most of their members are Pacific families. The credit union is helping families to break the cycle of debt and improve their finances for healthier and happier futures. Find out how
Q & A with Lending and Business Development Manager Lele Fa’ifa’i
When do I need your help?
There are lots of types of debt people take on, and high interest rates with personal loans are the most common type of debt we see. One member we worked with was paying 39% interest on a personal loan which we managed to refinance.
$10,000 loan @ 39% interest rate per year and a loan term of 36 months. Total interest paid on the loan will cost you $6,977.29 if no additional payments are made to the loan during the term of the loan.
What is debt consolidation?
You can take out a personal loan to consolidate debt. Personal loan options through the Credit Union are flexible and can be designed to suit your needs. We offer affordable repayments, a selection of repayment terms, a dedicated lending consultant and you can top up your loan at any time (Terms, conditions and Lending criteria apply).
Why should I consolidate my debt?
By consolidating debt with a members loan, your funds are freed-up to start saving. When you start saving, you can use your saved funds without having to borrow more.
If I want to consolidate my debt what are the steps?
Interview – with our Lending Manager. At this time we complete a loan application together in person and identify your financial out goings (payments, costs etc).
Documents – we collect all supporting documents like debit to repay, bank statements, confirmation of income
Processing – we process the members application for approval or decline
Review – we review the members application with you (this can be done over the phone)
- Sign up – you are signed up as a member and from here you make one payment for all debt
Why should we consolidate debt with NZCU Employees instead of someone else like a finance company or bank?
Credit unions are member owned and led. If you hold an account with us you also have a say in how the credit union operates through our annual general meeting (AGM). Because you have a say, if there are products or services that our members need, we can take this feedback and seek approval through our board. Once our board has given their approval, we incorporate the product or service into operations for the benefit of our members.
Lele’s top 5 tips for Families with Debt
- Review your finances yearly
- Stay within your budget expense
- Save a little
- Talk to the credit union FIRST, for all your financial matters
- Pay your highest interest rate debts first by consolidating to a lower interest rate
Visit the NZCU Employees website