The Big Payoff Loan

 

 

 

 

 

 

 

The average credit card debt per household (with a credit card) is now $10K.  Just making minimum payments, this would take approximately 38 years to repay.  Balance transfers do not focus on a total debt reduction and loan consolidations are hard to come by and may be very expensive.

The BIG Payoff Loan™ is not your typical credit card debt solution. While it can reduce, remove, and transfer credit card debt, it is not charging you outrageous fees to do so. It doesn’t simply consolidate debt… it actually helps you reduce it. And, it does all of this at a lower interest rate than you may be currently paying. The BIG Payoff Loan™ manages your credit card debt little by little. So in time, you are left with a solid credit history, better debt management skills, and no more credit card debt. CHIP AWAY AT YOUR CREDIT CARD DEBT and find The BIG Payoff™!

The Solution

Using the debt snowball concept, The Big Payoff Loan™ was designed for consumers who have a desire to reduce their credit card debt, but don't know exactly how to do it. Basically, you transfer a percentage of your current credit card debt to a 12-month personal loan at a low fixed interest rate.  If you succeed at paying down this portion of the debt over the 12-month period, the credit union would then advance additional funds to pay down another portion of your credit card debt.  This repeats itself until all debt is repaid.  However, if you fail to pay as agreed or reduce your overall debt, the you may not be eligible for future advances in the program.

How It Works - An Example

Let's say that you have $10,000 in credit card debt. Now, let's compare the two methods of payment on your credit card debt.

MAKE MINIMUM PAYMENTS EACH MONTH METHOD 
(Assuming 2% of balance monthly payment and interest rate of 16.9%APR)

  • It will take you 40 years to pay of this debt.
  • You will pay $22,000 in interest over that time.

THE BIG PAYOFF LOAN METHOD
(Assuming a (4) year payoff, 2% minimum payments on remaining credit card balance and a personal loan interest rate of of 10%APR)

YEAR 1 | You take a $2,500 loan from LLCU reducing your credit card debt to $7,500. Also, you will continue to make your minimum payments. Being part of the program, you will get a reduced rate of 9.75%APR. The first year you will pay $134 of interest on the personal loan from LLCU and $1,339.52 of interest on the $7,500 remaining credit card debt.

YEAR 2 | You take a $2,500 loan from LLCU reducing your credit card debt to $5,000. Also, you will continue to make your minimum payments. Being part of the program, you will get a reduced rate of 9.50%APR. The second year you will pay $131 of interest on the personal loan from LLCU and $884.52 of interest on the $7,500 remaining credit card debt.

YEAR 3 | You take a $2,500 loan from LLCU reducing your credit card debt to $2,500. Also, you will continue to make your minimum payments. Being part of the program, you will get a reduced rate of 9.25%APR. The third year you will pay $127 of interest on the personal loan from LLCU and $429.52 of interest on the $7,500 remaining credit card debt.

YEAR 4 | You take a $2,500 loan from LLCU reducing your credit card debt to $0.Being part of the program, you will get a reduced rate of 9.00%APR. The fourth year you will pay $124 of interest on the personal loan from LLCU.

Total Interest Paid Over 4-Year Period with The Big Payoff Loan™ | $3,169.56.

So, if you were to pay off your debt using the The Big Payoff Loan™, you would save $18,830.44 in interest and pay it off ten times faster!

Product Details

  • Smallest Balances Are Consolidated First, up to $2,500
  • Minimum Loan Amount $500
  • Maximum Term Is (12) Months
  • Maximum of $15,000 in Unsecured Debt
  • Free Balance™ Credit/Financial Counseling
  • Land of Lincoln Credit Union Auto-Pay Is Required

Get Rate Discounts and Pay Down Your Debt

Pricing and Based on Signature Loan Rates (subject to credit approval)

  • Each Year Your in the Program You Get an Additional 0.25% Off the Big Payoff Loan™ Rate
  • Even Better, If You Create a Budget Using Our Balance™ Program You Get an Additional 0.25% Off Loan Rate

Approval Guidelines

  • Maximum Outstanding Credit Card Debt $15,000
  • Proof of Income (POI) Required for All Applicants

Other Information

To Qualify for Additional Loans in the Program Members Must:

  • Not Be Delinquent 30 Days or More
  • Total Credit Card Debt Must Be Lowered by 100% of Amount Borrowed (i.e. In Year One if Member Has $10,000 and LLCU Pays Down $2,500, then to continue in program in Year 2 member must have $7,500 or less in unsecured credit card debt).