BOUNTIFUL – Debt has a stranglehold on a lot of people, young and old.
What if you could get your interest rates reduced and receive help from family and friends to loosen that hold, if not eliminate it?
That’s what Credit Circle is trying to do, explained CEO David C. Shimko.
He brings years of experience dealing with the financial word, including years of experience on Wall Street. He also worked for banking giants JP Morgan and Banker’s Trust, and has taught many financial economics courses.
“Our firm provides a loan option for parents to help their young adult children establish or repair credit,” Shimko said.
That parental option doesn’t simply mean they bail out their children, however.
Rather, parents can back a loan, giving their child a lower interest rate, maybe half what it would be, allowing the debt to paid off faster, he said.
Shimko realized the need for such an option with his own children. One of his five children recently graduated from college and two more are about to and they had each accumulated more than $3,000 in credit card debt.
“They were paying more than 18 percent in interest,” he said. “With this program, we can offer a way to help a lot of them get out of debt.”
It’s not only struggling young students who need help.
Shimko cited the case of a physician and his wife where one of them needed expensive surgery. Their resultant bad credit meant banks wouldn’t back a loan.
In another case, a Florida law student accumulated $200,000 in student loan debt and $50,000 in credit card debt. Her dad said he would like to help, but he couldn’t take on the entire $50,000 himself.
But he could take on a risk to back $5,000.
Another case involves co-workers of an employee and spouse who are trying to adopt. The co-workers are going to help back loans to finance the adoption, Shimko said.
In addition to the satisfaction of helping a friend or loved one, participants can get up to 2 percent reward per year.
If grandparents backed a $100,000 loan, for example, they could collect $2,000 a year. That’s enough for a retired couple on a fixed income to pay their property tax, perhaps, he said.
For more information, visit www.CreditCircle.com or call 385-259-0495.