Jennifer’s situation sucked! Well…..it seemed like it for her at the time anyway. Happy ending here.
Her debt file comes to us from Raleigh where Jennifer needed to consolidate her car loan, credit cards, and student loans. She was desperate to get it all consolidated quickly and have only one small manageable payment each month.
Here we give you details of this debt file. For those of you residing in North Carolina you might also be interested these other files – the Charlotte credit union consolidation, and the Greensboro consolidation.
Jennifer’s Credit Union Debt Consolidation In Raleigh NC
Jennifer was having some sleepless nights due to all her debts. She had a sizable student loan debt of $45000 to deal with and she also had $13000 in credit card debt – and a car loan owing $22000. She is a single woman living alone at age 25 years old and she wasn’t able to make ends meet on her salary.
She grew up in Woodland Ridge which is just south of North Carolina State University where she went to take get her degree in Veterinary Medicine. She doesn’t actually have a job in her field though and works in another area all together. While she was putting herself through university she was working in stables with horses. She LOVES her horses and her job became a labor of love – to be sure.
So her total debtor liability was $80000 dollars. It’s tough to service this much debt when your income is only $15 dollars an hour. Although she works A LOT of overtime it was still a struggle. Furthermore, since she lives alone she doesn’t have the spousal advantage of a duel income (yet…because she had a fiancé at the time of her consolidation application). But for now she wanted to combine all of her debts into one and make one low payment each month – or biweekly – whatever the terms of the consolidation loan.
She was offered a loan from her parents to pay off all her debt with the idea she would pay them back with a very low interest rate. She didn’t want that.
She wanted to make sure there was no strings attached with a family loan. She knew that if she took them up on their offer of a loan she would be beholden to them and anytime she spent money on something her parents considered frivolous she would never here the end of it.
Sometimes it’s an ideal situation when you are lucky enough to get a low interest loan from your parents, but that usually only works when the parents are “cool enough” to act professional and not tell their children what they should be doing with their lives.
Jennifer wasn’t going to even go there.
Why Jennifer Chose A Raleigh Based Credit Union For Her Consolidation
She was told by her fiancé that she should consider and consolidation loan with a local credit union because he is a firm believer in supporting credit unions over major banks. Especially after the 2008 debacle in which some major banks were found to be fraudulent and corrupt criminals (although these criminals never spent a day in jail, but that’s for another LONG WINDED RANT).
He does all his banking with the Welcome Federal Credit Union in Morrisville which is more like a bedroom community just north of Raleigh. He suggested she try there and use him and his family as references. His entire family has used the this same credit union and speak very highly of it. Their full address is 10810 Chapel Hill Rd, Morrisville, NC 27560.
So off she went and made an appointment with a loan officer there hoping for a viable solution that would result in her only having one $80000 loan over 10 years with manageable monthly payments. She was also hoping to get approved for the lowest interest rate possible. Her credit score would mostly dictate what kind of interest rate she was going to get but there are mitigating circumstances that sometimes come into play when a loan officer at a credit union makes a decision on a loan application.
The Credit Union’s Help Based On Her Credit Score
In Jennifer’s case her FICO score was low and considered to be bad credit at 593. This was her averaged score when you take into consideration her Vantage Score and her FICO score. With a score this low it’s hard to get approved unless there is a major shift in the request such as home equity, a co-signer, or some kind of asset being used as collateral.
However, what team member at the Welcome Credit Union did with her really cool. The woman Jennifer was being served by suggested that she try and clean up her credit rating first before trying to get approved for a consolidation. She also let Jennifer know that if she really couldn’t stand it anymore (the stress of debt that is) she could consider a debt settlement or debt relief plan instead.
The Reason Her Credit Score Was So Low
Now we have to ask why? Why was her credit score so low? Nobody gets a bad credit score without something going awry with creditor payments.
The first thing that happened was she got had a bad accident falling off of a rambunctious mare. She broke her leg and cracked two ribs. This laid her up in bed for a long time and as soon as all her bones healed she caught a serious viral cold that kept her down for another month. Needless to say she wasn’t getting paid from the stables during this time.
She could have made the minimum payments on her credit cards during her recovery but she was so out of it she didn’t get around to paying her Visa card bills and her MasterCard bills. On top of all this she had some medical bills that drained whatever savings she had but away for a rainy day.
And it rained.
By the time she was all healed up and feeling normal her credit score was severely damaged – not to mention her ego and sense of well being. She was starting think she was cursed.
She Took The Credit Union’s Advice
She worked at cleaning up her credit score the best she could. She did it herself without the aid of a credit score clean up service. She simply did the work and had some of her negative score factors removed or amended. This wasn’t easy but it was well worth it.
Once she did all she could to improve her credit score she increased her income by taking a second job at a restaurant in East Raleigh. Even then the credit union folks couldn’t approve the financing because her credit score was now just barely above 600.
She was going have to take further action.
Credit Union Suggested a Co-Signer
In order to approve Jennifer’s consolidation the credit union suggested she consider finding a willing co-signer that has a better credit rating. She REALLY didn’t want to get a co-signer involved but reality dictated she was going to have at least look into the idea or stay burdened with a high interest rate on her existing $80000 in debt.
She only knew one person she would consider asking……her grandfather Pete.
Jennifer’s grandfather Pete is a very wealthy man who made his money developing software back in the mid 1980s and over the decades that followed he became a very rich man – and he adored his granddaughter Jennifer. He actually mention to Jennifer’s parents that he would like to pay for her education. But she just didn’t think that was right and she vowed to make it 100% on her own.
But now it looked like she would need to humble herself if she was going to get her finances back on track.
So she called up her Grandpa Pete and very timidly asked him for help. You guessed right…..he was overjoyed to help her. He said (exact quote), “Jenny…..there is NOTHING I would rather spend money on that this. I offered it and was disappointed you didn’t except my help. But I understand….you have the same stubborn pride I have.”
So she was set. He went down to the credit union with Jennifer and the staff were happy for her. He co-signed the consolidation loan application and it was approved quickly. She got a fairly high interest rate though and because of that a week later old Pete (79 years young) called her and practically begged her to let him simply pay off the loan for her and forgo any interest to himself.
So there you have it folks – some people are born lucky. This is the kind of “leg up” that can make a huge difference in a person’s life.
Credit Union Debt Consolidation In Raleigh NC – In Closing
So we learned a few obvious things with Jennifer’s quest to get approved with a local credit union located in Raleigh North Carolina.
1.) No matter how sick or hurt you get – make sure SOMEBODY is looking after your financial affairs. This was the only reason Jennifer’s finances started to get out of control. I know it’s a sick fact of life but the money has to be dealt with. You have to protect your credit rating at all costs!
2.) When help is available don’t let your pride stop you from excepting help from people who have your back. It’s of course commendable that Jennifer wanted to handle all of her early expenses and debts in life, and don’t think old Grandpa Pete wasn’t aware of her debts all along. Don’t think that Grandpa Pete didn’t watch her suffer from her injuries and watch how the medical bills wiped out all her saving – savings she made from working hard in the stables. No – when someone who loves you offers to help you when you are in a financial bind…..except their help! If they truly “have your back” they REALLY WANT TO HELP YOU!!
3.) We also learned that the staff at the Welcome Federal Credit Union are a class act. They were very kind to Jennifer and helped her take the right steps on her way to solving her problem. Because of their due diligence Jennifer’s Grandpa Pete started doing some business with them as well. (although he was moving a lot more money than Jennifer). The lesson here is that if you have a caring and honest hard working staff your company is going to grow and thrive.
So we bid you a fond farewell from Raleigh North Carolina – we hope this post on Jennifer’s debt consolidation quest helped you in some way.