CONTROLLING THE DEBT MONSTER
CONTROLLING THE DEBT MONSTER
If you have multiple loans and find it difficult to cope with your payments and the rising cost of living, you can CONSOLIDATE!
Consolidation is simply combining all your loans into one with one loan payment instead of two or three. This payment is usually significantly lower than the two or three combined. This is possible because when you consolidate, you essentially spread your loan payments over a longer repayment term and this makes the payments significantly less. Loan consolidation allows you to increase your disposable income and will give you well-needed breathing space with your finances!
SAVE YOUR EXTRAS!
We also recommend that you start a contractual savings plan once you have consolidated and now have a little extra coming back into your pocket each month. Our Golden Harvest Savings Plan would be the best option. At JTA Credit Union, you can consolidate with our Debt Consolidation Loan Package. This loan has two components, an unsecured and secured component. With the secured component, you can consolidate all loans, within and outside of the Credit Union using whatever securable asset you have. These include your house, land or motor vehicle title. Insurance policies and savings in other financial institutions can also be used as security. You can also consolidate your debt with an unsecured loan at JTA Credit Union. The maximum given for the unsecured loan is $1.5 million.
STOP ACCUMULATING DEBT
To control debt it is important to stop acquiring more. One way to do this is to curb your credit card use. A credit card represents a high-interest loan with high fees in your wallet. It should only be used for emergencies. As much as is possible, use your debit card instead of your credit card. The JTA Co-op Credit Union can help you to tame the debt monster. Kindly call your Credit Union representative today and ask about our debt consolidation loan!
HOW TO ‘BE SURE’ WHEN BORROWING
Don’t be fooled by sweet talk and promises of low-interest rates! When borrowing: BE SURE that the interest rate being offered on the loan is fixed and not variable. This means that it cannot change over time. BE SURE that your interest is calculated on the reducing balance. This means that your monthly repayment gets lower as you go along. BE SURE to check out all the fees you have to pay to get this loan, BE SURE to know what the penalties are for late or non-payment of loans, BE SURE to find out if your loan is insured. This means if you die or become permanently disabled, your loan does not become a burden to you or your family members.
HOW TO INVEST WISELY IN A LOW-INTEREST RATE REGIME
Investment rates in the Jamaican financial market have reduced significantly. While the investment rates are not very motivating, it is still worthwhile to shop around for the highest returns you can find.
MAXIMIZE YOUR EARNINGS WITH A TAX-FREE SAVINGS PLAN
A tax-free savings account helps you to maximize your returns by avoiding withholding tax which is a percentage of all interest earnings. To benefit from tax-free returns, the total amount invested (your principal) must remain on the account for at least five years. If you have a lump sum of $25,000 or more, you can invest it at the JTA Co-op Credit Union with the Teachers’ Optimizer Plus (T.O.P.). With this investment instrument you can access 75% of accumulated interest and at maturity, you will get your total principal and all your remaining interest. We offer competitive returns on your investment and remember, with T.O.P., it is all TAX-FREE!
MAKE EVERY DOLLAR COUNT WITH A CONTRACTUAL SAVINGS ACCOUNT
A contractual savings account encourages continuous and disciplined saving. Here’s how it works. You sign an agreement to save a certain amount for a certain number of years (investment term). Usually, the returns are guaranteed. At maturity, you will receive all the money you saved over the stated period of time along with the interest. At the JTA Credit Union, every dollar will count with our Golden Harvest Savings Plan. You can start with as little as $1,000 per month and save for a term of one (1) to ten (10) years. Your savings will earn a premium rate of return and interest is compounded on a monthly basis. That means that your money grows at a faster rate. With a Golden Harvest Savings Plan, you also benefit from a free life and disability insurance! Sign up for your Golden Harvest Savings Plan today, and remember, the longer you save for, the more you earn!