Osvaldo and Mariana Gómez* of Cleveland, Ohio, needed help. The two fell behind on their rent payments, but since they are retired, it was hard to catch up.
The Gómezes thought they were out of options to pay their late payments and looked for a simple solution. In desperation, Osvaldo took out an auto title loan for his truck and they were able to pay the $2,000 bill.
On the surface, everything seemed fine – they paid their bill. But because they didn’t look into all of their options, Osvaldo and Mariana were stuck with a loan that had a high interest rate. So not only were they paying $93 monthly, they also paid a portion of their 38 percent interest rate, plus additional fees.
A few months later, Osvaldo and Mariana met Martin Navarro, Church Relations Representative for Everence. The Gómezes asked Martin if he could take a look at their financial health, to see if they could move closer to their son in Indiana. When Martin reviewed their bank accounts, bills and other financial papers, he found the loan that Osvaldo had taken out.
"I was surprised because the interest rate on his loan was very high," Martin said. "It can be difficult to repay a loan with such high interest."
Martin knew they could reduce their interest rate from 38 percent to 8 percent if they transferred their loan to Everence, a financial services organization founded on faith values. The Gómezes were happy to find out that they could lessen the impact of the loan.
Denise Reinoso Wayman, Regional Operations Manager for Everence Federal Credit Union, helped the Gómezes with their loan transfer to Everence.
Understand before you sign
"It is important that you really understand what you're signing when you get a loan," Denise said. "If you feel rushed to sign the papers, my advice is to leave the room and take more time to evaluate the purchase or loan."
Now Osvaldo and Mariana’s finances are more stable. Their monthly payments are reasonable and affordable. "We are happy," Mariana said.
According to Denise, a family can evaluate a loan with these three points:
- Take time to determine whether a purchase is necessary, especially if it requires a loan.
- Develop a cash flow plan and follow it well, without over-spending.
- Read the fine print, ask questions and compare your options to ensure the lender is not charging more.
For more information about how a loan from Everence can help you, contact your local Everence Federal Credit Union branch or call (800) 451-5719. Everence offers loans at competitive rates, including loans for individuals, real estate and students. You can also find more information rel="noopener noreferrer" about our loans on our Web page.
If you need help with your finances, you can call LSS Financial Counseling. Everence has partnered with this organization to provide free financial counseling on a range of basic financial issues. Call toll free at (877) 809-0039 to speak with an LSS-certified rel="noopener noreferrer" financial counselor.
Read the story in Spanish here. (Lea la historia en español aquí.)
* These are not their real names.