The IFCU Blog

TACKLING HOLIDAY DEBT

START PAYING DOWN DEBT FROM THE HOLIDAY SEASON

According to one recent study, one-third of all Americans went over budget with their holiday spending. If you count yourself among that crowd, it’s time to start hammering away at that debt. Here are some simple ways to pay down your holiday debt.

Cut Expenses

The first step to reducing debt is finding “extra” money to send its way.

1. Look at your current monthly expenses and see where you can cut back.
   • Eating out
   • Gas
   • Groceries
   • Utility usage
   • etc.
2. Ask yourself what services you can cancel.
   • Video streaming subscriptions
   • Music streaming subscriptions
   • Gym memberships
   • Prime membership
   • etc.
3. Look for better deals on expenses you can’t cancel.
   • Use IFCU's Credit Score tool to see how much money we can save you on your current loans.
   • Insurance. Did you know IFCU members get discounts on auto and home insurance? Check it out here.
   • Mobile Service. Did you know IFCU members could save up to $400/yr by switching to Xfinity Mobile. Check it out here.
4. Search for ways to reduce your expenses in the future.
   • Plan ahead
   • Work up a monthly budget. Try our simple budget planner here.

Once you have some money freed up, funnel it to your debts.

Check for a Balance Transfer

If you have a lot of credit card debt, you may look at transferring to a low-interest credit card. These cards can be helpful because they come with either low interest for an introductory period. When shopping for a balance transfer card, consider the following factors:

• Transfer fee. Make sure the balance transfer is low. Usually it’s about 3 percent of your total transfer.
• Introductory period. Most balance transfer cards offer their low interest deal for anywhere between six and 24 months. Do the math so that you know you can pay off the debt within that time frame.
• Interest rate. Be aware of the interest rate after the intro period ends.

Avalanche It

The best way to attack credit card debt is what’s commonly called the “avalanche method.” You target the card with the highest interest rate first, then work your way down from there. This method will save you money on interest.

CHECK OUT IFCU DEBT TACKLING SOLUTIONS

Balance Transfer Special. Special ends March 31, 2023

• No transfer free.
• Low 4.99% APR* for 12 months.
• Transfer to IFCU Visa Platinum, Visa Select or Visa Classic
• Cash back rewards and fixed-rate credit card options

Debt Consolidation Loan. Special ends March 31, 2023

• Combine all your debt into one convenient loan
• As low as 9.99% APR**
• Transfer to IFCU Visa Platinum, Visa Select or Visa Classic
• Cash back rewards and fixed-rate credit card options

Financial Counseling.

• Industrial Federal Credit Union members have access to designated Certified Credit Union Financial Counselors (CCUFC).
• Our counselors will help you navigate through tricky financial situations and develop a plan for future success.
• Best of all, there is no cost to utilize IFCU’s financial counseling services. Just another way we say yes to our members.

Balance Transfer: *Annual Percentage Rate (APR). Promo ends March 31, 2023. The 4.99% APR promo rate applies to balance transfers to an IFCU credit card from a non-IFCU credit card. No minimum balance required. Purchases and cash advances excluded. ^Rate is good for 12 months from the first initial transfer, after which the APR will convert to the cash advance rate of 12.50%, 15.50%, 13.50% or 14.50%, determined by VISA product and creditworthiness. The APR will be fixed for the Classic card and variable for the Platinum/Select card after promotion period ends. The variable rate APR will vary with the market based on the Prime Rate and is adjusted monthly. It is determined by adding 5% to the highest U.S. prime rate published in The Wall Street Journal “Money Rates” table on the 15th business day of the month. The rate is effective on the first day of the billing cycle. New and current cardholders eligible. Credit card approval depends on creditworthiness and other qualifications. All Credit Union loan programs, rates, terms and conditions are subject to change at any time without notice. Call us at 765-771-8000 option 1 to talk to a consumer loan specialist for current rates, terms and conditions.

Debt Consolidation: **Annual Percentage Rate (APR). The example shown above is for illustrative purposes only. All loans are subject to approval and individual rates may vary based on your credit score, terms, and underwriting conditions. Your actual rate may be higher. This special can not be used to refinance any IFCU loan or Visa. New money only. Maximum term of 60 months, with a max of $15,000 borrowed. Certain restrictions may apply. We may offer other terms and conditions connected with this offer. All Credit Union loan programs, rates, terms and conditions are subject to change at any time without notice. Call us at 765-771-8000 option 1 to talk to a consumer loan specialist for current rates, terms and conditions.