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Finding Hidden Money - Credit Union Loans

This step of your free debt relief guide is all about finding your hidden money! If you think this sounds too good to be true, please read on...

When you sign up for a loan, you generally have to repay them within a year, or five years at most. Individual credit unions offer special loan rates that are generally beneficial to the borrower. Many people consider signing up for credit union loans.

Here are the features of a credit union loan:
- The insurance for the loan is not a direct cost for the borrower.
- There is an option for repayment protection insurance.
- There are no hidden fees or transaction charges whatever.
- Repayments are calculated based on the reducing balance of the total loan. Smaller interest repayments are related to how frequently you repay the loan.
- There are a variety of repayment loans to select from, which depend on the borrower's livelihood.
- It is flexible: the borrower can repay the loan before it is due, or he can make larger repayments than those agreed on without any penalty.
- The additional lump sum repayments the borrower has paid are accepted without penalty.

Credit Unions are like banks but the credit unions have some unique characteristics and educated customers take advantage of the best deal offered at Credit Unions and not at banks.

First and foremost, the customers own credit unions. This is not the case with banks where clients are the customers. The priority of banks is profit and the shareholders usually own the bank. On the other hand credit unions are non-profit organizations whose goal is to provide a service over profitability.

One can ask: if the bank has shareholders who govern its management, then who runs the credit union?

The upper management of the credit union is composed of a board of directors who decides on the operations. These are elected volunteers. They do not receive a salary. It is the members who want their opinion heard as to how the institute is run.

One can be a Credit Union member if they share a common bond. These are people of the same geographic community, a workplace or a religion. That’s why credit unions are different from banks. It is because their services are limited to their members. But it is more difficult for them to obtain credibility because if a credit union were not able to limit membership, then they would lose their status as a credit union.

That is why there is hidden money in credit unions. Credit unions generally offer the same or similar services and products as larger banks, but the credit unions do not have the same volume as the banks.

Small credit unions can compete with banks when it comes to the income they generate. Credit unions have a tendency to focus on service over profit which is the reason why the interest rate is almost always better at the credit union.

Don’t worry. Your money will be as safe at credit unions as it will be in a bank deposit. As already explained, because of the cheaper down-payment you give to a credit union compared to the bank, there is hidden money for you.

Another option you can consider is hidden money on home equity loans. If you are a home owner, home equity loans allow you to use your equity as collateral.

The hidden money here is that it is a debt on your property in your possession and it secures your debt loan. If the creditor wants his money back, then the property can be sold.

A home equity loan can either have a fixed rate mortgage or it can be an adjustable rate mortgage.

The expenses that make a home equity loan useful are medical bills, debt consolidation and home repairs. The tax benefits for families who have home equity loans can enjoy a home equity rate loan that is tax deductible. That is because the loan is used for primary functions. This means a lower monthly payment rate – allowing you to save more.

It is always good to save on your expenses. That is why we suggest that you look up credit unions as much as possible as opposed to banks, and that you sign up for home equity loans rather than the home mortgage. If you write it on a piece of paper, you will discover that you can actually save more with credit unions and home equity rates.

Read on now for the next step which focuses on Debt Counseling.