“Patelco gave us a debt consolidation loan when we needed it the most—we’re set to pay it off in a year! Thank you Patelco for being so amazing!” – Christin, Patelco Member
Paying off high-interest debt doesn’t need to feel overwhelming if you understand your options. Some common strategies to consolidate debt include credit card balance transfers, personals loans or home equity lines of credit.
Yet an often overlooked option is to right in front of many car owners — applying for an auto loan could be a smart way to consolidate all or some of your high-interest debt into one low monthly payment.
If you own your car free and clear, or if you have an existing car loan, you can borrow from your car to take money out to pay off higher interest rate debt, reduce your rate, and free up cash each month. Because you’re using your car as collateral, you’re able to borrow at a better interest rate than unsecured loans.
Take a look at your potential savings* below
$20,000 Loan Amount | Auto Refinance | Personal Loan | Credit Card |
Annual Percentage Rate (APR) | 3.32% Fixed |
7.72% Fixed |
12.50% Variable |
Average Loan Term in Months | 63 | 48 | 240 |
Average Monthly Payment | $347 | $488 | $400 |
Estimated Total Interest | $1,818 | $3,291 | $20,905 |
We’re proud to offer our members:
- Competitive car loan rates starting at 6.29% APR¹
- Up to 90 days of no car payments²
- Up to 84 month terms for a new or used car purchase or refinance
Worried you won’t qualify for a low rate upfront? No problem! We’ll automatically lower your rate up to 0.50% APR for making 12 months of payments on time³
Now is the time to take control of your financial future, and Patelco is here to help.
Prefer talking to someone?
- Call 800.358.8228 x1212 weekdays 8am to 5pm and Saturdays 9am to 2pm (PT)
- Schedule a virtual appointment
- Find a branch near you to make an in-person appointment for faster service as social distancing limits the number of people in the branch