CUA Debt Consolidation Loan
CUA Debt Consolidation Loan – Benefits
Most people are aware what a debt consolidation loan is: it’s simply a loan that allows you to roll all of your outstanding balances together into one convenient loan.
This allows you to pay out all of those outstanding personal loans, credit cards or store cards you have. You then only have to think about making one convenient repayment each month on your new debt consolidation loan.
While this is ideal for making your finances more streamlined, there are other benefits to consolidating your debts too.
Reduce Monthly Repayments
Think about how much you currently pay on your outstanding debts each month. If you’re anything like most people, you won’t have added up the total amount you spend before on all of your debts. You probably won’t know the exact interest rate you’re being charged on those debts either. Yet, you’ll know roughly how much you have to pay on each separate account every month.
By consolidating those debts together into a CUA Debt Consolidation Loan, you have the opportunity to potentially reduce your monthly repayments. This can help to free up your cash flow and make it easier for you to put that money towards other things.
Reduce Interest Charges
If some of the debts you want to consolidate are credit cards or store cards, the chances are you’re already paying exorbitant amounts of interest on those outstanding balances.
The CUA Debt Consolidation Loan is available at a very competitive interest rate, so you could find you’re able to save hundreds or even thousands of dollars in just interest charges.
Speed Up Debt Reduction
A Debt Consolidation loan is calculated using “principal and interest” repayments. This simply means that every repayment you make will pay a portion off your debt balance for you.
By comparison, credit cards repayments are calculated to cover the interest charges due with only a tiny portion of your payment left over to reduce the balance. This is the trap that keeps most people in debt for years and years with the same credit card.
Case Study
In this scenario, John has $7,000 outstanding on an unsecured personal loan. He also has a credit card with $5,000 outstanding, a smaller credit card with $3,500 owing, and a store card with $1,500 owing.
Here’s how his situation looks right now:
| Debt Type | Balance Owing | Interest Rate | Monthly Repayment |
| Personal Loan | $7,000 | 13.75% | $161.97 |
| Credit Card 1 | $5,000 | 16.75% | $150 |
| Credit Card 2 | $3,500 | 16.25% | $105 |
| Store Card | $1,500 | 22.75% | $52 |
| Total Monthly Repayment | $468.97 |
John has done some research and has learned that the CUA Debt Consolidation loan is available at just 12.99%. This is substantially lower than the rate he’s paying on his existing debts.
Here’s how his situation will look if he consolidates those debts over to CUA
| Debt Type | Balance Owing | Interest Rate | Monthly Repayment |
| CUA Debt Consolidation Loan | $17,000 | 12.99% | $386.72 |
| Total Monthly Payment | $386.72 |
In this example, John will reduce his minimum monthly repayment amount by $82.25. He’ll also have the convenience of only having to make one easy payment each month, making it easier to keep up with. What’s more, he will also be able to benefit by actually gaining a head start on his debt reduction plans, simply as the loan is designed to be paid down with each payment he makes.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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