Reducing your debt – how we can help
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. At NZCU Employees, we can help you to break the cycle of debt and improve your finances for a healthier and happier future by consolidation into one personal loan.
Here we share a Q & A with our Lending and Business Development Manager Lele Fa’ifa’i.
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.
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.
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
I’m interested, what should I do?
Contact Lele Fa’ifa’I @ New Zealand Credit Union Employees to make an appointment:
Phone: 09 579 0448
Visit: 591 Great South Road, Penrose, Auckland 1061