Educational Systems FCU Helps Members Consolidate Debt, Improve Credit Scores

A 25-year member with an established lending relationship contacted us at Educational Systems FCU to refinance his Home Equity Line of Credit (HELOC). Our member stated that he and his wife were starting to realize that they needed to consolidate some debt to improve their cash flow every month. We reviewed his request and although a HELOC was not possible we considered a Fixed Rate Home Equity Loan. Their credit scores were good but the overall debt to income ratio was above the norm in the industry and there were some property condition issues that would have posed a problem with most lenders. We consolidated nearly all of their debt decreasing their monthly obligations by over $1,000.  They contacted me a year later to advise that they were not only still debt free (other than the mortgages) but that they had also started putting money away for retirement.  Their credit scores also increased by over 100 points each. They are very grateful for how we helped them take control of their finances.