Navy Federal Credit Union first opened in 1933. At that time, only Navy Department employees could join the credit union. Fast forward nearly one hundred years, now all uninformed personnel with the Department of Defense are eligible. This includes Army, Navy, Air Force, Space Force and Marine Corps. They also allow any family members along with Navy Fed employees to join.
As a result of this larger group of eligible members, Navy Federal Credit Union has emerged as one of the largest banks in the credit card industry. Add the personal loans to the mix, NFCU last reported in 2023 a total of $127 billion in outstanding loans.
What are your options to pay back your Navy Federal Credit Union credit card debt?
Facing a large amount of credit card debt and/or personal loans can be scary. It’s a constant reminder that we messed up. And chances are neither your formal education nor your parents prepared you on how to handle this situation.
There are many debt consolidation options to consider when trying to pay back your NFCU credit card debt. The five main options are:
- Debt Consolidation Loan
- 0% Balance Transfer
- Navy Federal Credit Union Internal Hardship Program
- Debt Management Plan (Credit Counseling)
- Debt Settlement Plan
But the one thing that must be done regardless is putting a stop to overspending. Each time we use a credit card we are likely purchasing something we can’t afford.
Create a detailed budget outlining all income and all expenses. Revisit this budget periodically and make revisions. Find ways to increase income. And decrease expenses.
Navy Federal Credit Union Credit Card Hardship program
If you find yourself struggling with credit card debt, hardship programs can help. Contact Navy Federal Credit Union directly and let them know about your personal hardship. Provide as many details as possible about your financial situation. Be prepared to provide them your monthly income and expenses. You must have a compelling hardship such as job loss or medical emergency to qualify. In short, telling them that you are simply looking for a lower interest rate and payments won’t suffice.
Any concessions granted by Navy Federal Credit Union will typically be temporary. A lower interest rate will likely last less than 12 months. Take advantage of that time and attack your debt with extra payments. Some creditors might reduce your credit limit or even close your card once they approve you on their hardship plan.
If you have no luck getting concessions or want more long-term benefits, credit counseling is your next best option. Navy Federal Credit Union works very well with nonprofit organizations offering their clients interest rates usually around 10%. Payments typically get lowered as well. Your credit card will be closed on their debt management program. This can be viewed as a good thing for some as the temptation to continue using the card is eliminated.
DebtWave has been helping Navy Federal Credit Union clients for more than 20 years
DebtWave has worked with various credit card accounts, including Navy Federal Credit Union, since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as Chase, Synchrony Bank and Bank of America accounts. Clients make payments via ACH either monthly, semi-monthly, weekly or biweekly and then DebtWave disburses payments to their creditors. Most clients complete their program and become debt free in less than 5 years. DebtWave has a 68% successful completion rate.
From 2010 to 2024, DebtWave helped Navy Federal Credit Union clients with a total credit card and personal loan debt of $18.3 million. 1,847 Navy Federal Credit Union accounts enrolled onto our program. And the average balance nearly reached $10K but settled at $9,910. Many clients witnessed their interest rates drop drastically along with a reduction in monthly payments.
Here are some additional stats from these clients:
The Dream of Getting Out of Debt on Your Own is Still Alive
Paying back your credit card debt may seem unrealistic. But it has proven to be achievable by thousands of DebtWave clients. If you would rather tackle the debt on your own, it can be achieved too. Create your own plan. The first step is lower interest rates. High interest rates (25-30% APR) on credit cards make it challenging. This would require you to significantly increase your minimum payments (at least 2x) to make any progress.
If you have your rates reduced to less than 10%, then use a payoff calculator or google spreadsheet to create a plan. Find ways to increase income and reduce expenses. Stay motivated and refrain from using cards again. Build an iron clad budget that accounts for all expenses.